J.P. Morgan Securities to Pay $18 Million for Whistleblower Protection Violations

By Ben Glickman

A JPMorgan Chase subsidiary will pay $18 million to settle charges that it violated protections for whistleblowers.

The Securities and Exchange Commission alleged Tuesday that J.P. Morgan Securities had prevented hundreds of advisory clients and brokerage customers from reporting potential violations of securities law to regulators with confidentiality agreements.

The SEC alleged that, from March 2020 to July 2023, J.P. Morgan Securities asked retail clients who had been issued a credit or settlement of more than $1,000 to sign agreements which required them to keep confidential information related to the settlement.

The SEC said the agreements did not allow clients to voluntarily contact the SEC and violated the whistleblower protection rule.

J.P. Morgan Securities did not admit or deny the findings and agreed to be censured, to cease and desist from violations and to pay a $18 million civil penalty.

Write to Ben Glickman at [e-mail]

(END) Dow Jones Newswires

January 16, 2024 09:23 ET (14:23 GMT)

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