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).