[ad_1]
The discharge said that the J.P. Morgan Securities consumer “guarantees to not sue or solicit others to institute any motion or continuing in opposition to [JPMS] arising out of occasions in regards to the account,” in response to the SEC. The discharge additionally stated that if the consumer violates the settlement, the consumer might be sued by J.P. Morgan Securities.
The SEC issued a cease-and-desist order in opposition to J.P. Morgan Securities, censured the agency and imposed the $18 million civil penalty.
“Whether or not it’s in your employment contracts, settlement agreements or elsewhere, you merely can’t embody provisions that stop people from contacting the SEC with proof of wrongdoing,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, stated in an announcement. “However that’s precisely what we allege J.P. Morgan did right here. For a number of years, it pressured sure purchasers into the untenable place of selecting between receiving settlements or credit from the agency and reporting potential securities legislation violations to the SEC. This either-or proposition not solely undermined important investor protections and positioned traders in danger, however was additionally unlawful.”
The SEC stated that J.P. Morgan Securities didn’t admit nor deny the company’s findings. After the SEC knowledgeable the agency that its consumer agreements violated the whistleblower legislation, it revised the language in its agreements to make clear that purchasers weren’t prohibited from speaking immediately with any authorities authority or regulator.
“We take our regulatory obligations severely and promptly took motion to resolve this problem,” a JPMorgan spokesperson stated in an announcement.
[ad_2]
