JP Morgan Chase & Co. has agreed to pay $151 million in penalties without admitting or denying any wrongdoing. The company's affiliates were accused of misleading brokerage customers who invested in its 'conduit' private fund products, exposing them to market risks, and failing to disclose financial incentives tied to the Portfolio Management Program and Clone Mutual Funds.
Additionally, the SEC charged JP Morgan Investment Management (JPMIM) with engaging in $4.3 billion of prohibited joint transactions and conducting 65 unauthorized principal trades totaling $8.2 billion.
Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, stated: “JP Morgan’s conduct across multiple business lines violated various laws designed to protect investors from the risks of self-dealing and conflicts of interest. With today’s settlements, which include multiple self-reports and large voluntary payments to harmed investors, JP Morgan is being held accountable for its regulatory failures.