8-KOther EventsExhibits & Filings

JPMORGAN CHASE & CO 8-K Report, Corporate Update (Dec 17, 2021)

Filed December 17, 2021For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) has entered into resolutions with the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) to settle civil investigations concerning record preservation requirements. Specifically, a subsidiary, J.P. Morgan Securities LLC (JPMS), failed to maintain copies of certain electronic communications sent or received by employees over unapproved messaging channels. The issues also involved related supervision failures. As a result of these resolutions, JPMS will pay a $125 million civil monetary penalty to the SEC. Additionally, JPMS, along with JPMorgan Chase Bank, N.A. and J.P. Morgan Securities plc, will collectively pay $75 million to the CFTC. These penalties address the failure to comply with record-keeping rules applicable to broker-dealers, swap dealers, and futures commission merchants.

Key Highlights

  • 1JPMorgan Chase's subsidiary, JPMS, has resolved civil investigations with the SEC and CFTC regarding record preservation failures.
  • 2The investigations found that JPMS did not maintain copies of certain electronic communications made over unapproved channels.
  • 3Related supervision failures were also identified by the regulators.
  • 4JPMS will pay a $125 million civil monetary penalty to the SEC.
  • 5JPMS, JPMorgan Chase Bank, N.A., and J.P. Morgan Securities plc will pay a combined $75 million civil monetary penalty to the CFTC.
  • 6The total penalty amounts to $200 million.
  • 7This filing pertains to 'Other Events' (Item 8.01) and includes exhibit information (Item 9.01).

Frequently Asked Questions

This filing announces that J.P. Morgan Securities LLC (JPMS), a subsidiary of JPMorgan Chase, has resolved civil investigations with the SEC and CFTC concerning failures to comply with record preservation requirements. This involved not maintaining copies of certain electronic communications sent or received over unapproved channels, along with related supervision failures.

JPMorgan Chase, through its subsidiaries, has agreed to pay a total of $200 million in civil monetary penalties. Specifically, J.P. Morgan Securities LLC will pay $125 million to the SEC, and JPMS, along with JPMorgan Chase Bank, N.A. and J.P. Morgan Securities plc, will pay a combined $75 million to the CFTC.

The failures relate to record-keeping rules. JPMS did not maintain copies of certain electronic communications where employees used unapproved messaging channels. The SEC and CFTC also found related supervision failures.

The 8-K filing itself does not provide specific details on the financial impact. However, investors should note that while $200 million is a significant sum, it is likely manageable for a large financial institution like JPMorgan Chase. The company's quarterly and annual financial reports would provide context on its overall financial health and ability to absorb such penalties.