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J.P. Morgan to Pay SEC and CFTC $307 million for Disclosure Violations

Jaclyn Jaeger | December 18, 2015

Two JP Morgan wealth management subsidiaries today agreed to pay a total of $307 million to the Securities and Exchange Commission and the Commodity Futures Trading Commission in joint enforcement actions for failure to disclose conflicts of interest to clients.

Both the CFTC and SEC charged J.P. Morgan Securities (JPMS) and JPMorgan Chase Bank (JPMCB) with, among other things, preferring to invest clients in the firm’s own proprietary investment products without properly disclosing this preference. JPMS and JPMCB have agreed to admit to the wrongdoing and pay $267 million to settle the charges. The bank will also pay $40 million to the CFTC to settle parallel charges.

According to the SEC’s order, JPMS failed to disclose numerous conflicts of interest to...

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