SEC Hits JPMorgan with Censure Over Unauthorized Trading

The Securities and Exchange Commission (SEC) has issued a cease-and-desist order against JPMorgan Chase & Co. and its securities subsidiary, citing a failure to catch that a statutorily disqualified person was participating in transactions.

The individual in question had been fined by UK authorities in 2011 for not reporting certain clients' potential insider trading, but still lacked authorization to trade in the US unless relief was obtained from the SEC. JPMorgan secured this permission in March 2024, yet no one at the company informed the individual or his supervisor that he could not make transactions until then.

The firm did not admit to the allegations and has agreed to a censure without a monetary fine due to its remedial measures and voluntary disclosure of the apparent violation. The SEC says this case highlights the importance of supervisory systems in ensuring compliance with regulations.