SEC Hits J.P. Morgan with Charges Over Statutorily Disqualified Person

The Securities and Exchange Commission (SEC) has announced settled charges against JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC for violating securities regulations.

J.P. Morgan allowed a statutorily disqualified person to be involved in at least 800 security-based swap transactions from November 2021 to March 2024. The SEC found that the bank did not have a reasonably designed supervisory system to detect and prevent these prohibited activities.

The violations occurred while J.P. Morgan was seeking permission from the SEC for the disqualified person's involvement in security-based swaps. As a result, the company willfully violated Sections 15F(b)(6) and 15F(h) of the Securities Exchange Act of 1934 and Rule 15Fh-3(h)(1).

J.P. Morgan consented to a cease-and-desist order and censure without admitting the SEC's findings.