JP Morgan units to pay $1m regulatory penalty

The Financial Industry Regulatory Authority (FINRA) has told JP Morgan Securities and JP Morgan Clearing Corp to pay an aggregate fine of $1m over allegations they failed to provide certain information to private banking clients and engaged in other related violative activity. The JP Morgan units have resolved FINRA’s disciplinary action without admitting or denying the findings.

JP Morgan Securities LLC and JP Morgan Clearing Corp. agreed to pay an aggregate fine of US $1 Million to resolve charges brought by the Financial Industry Regulatory Authority that, at various times from 2006 through 2014, they failed to provide certain information to private banking clients and engaged in other related violative activity. Specifically, FINRA alleged that from December 1, 2006 through December 10, 2012, JPMS failed to send notices to 3,266 of its Global Wealth Management customers confirming changes to their investment objectives within 30 days, as required by Securities and Exchange Commission rules. FINRA also claimed that, from October 2012 through August 2012, JPMS (1) failed to collect and review certain outside brokerage statements of its employees; (2) from January 1, 2009 through September 19, 2013, did not send a copy of customers’ account information to 1,310 private bank account holders; (3) from September 2007 through September 2014, did not provide confirmations of transactions to more than 7,500 private bank accounts for in excess of 92,000 transactions; and (4) from January 1, 2011 through December 7, 2012, sent letters to customers confirming updated information, but failed to retain copies of such letters. FINRA also charged that, annually from 2011 through 2013, JPMCC failed to send required privacy notices to certain customers. The JP Morgan entities resolved FINRA’s disciplinary action without admitting or denying any finding.