JPMorgan Chase to Pay USD 151 Million in SEC Settlements

JPMorgan Chase will pay USD 151 million to settle five SEC enforcement cases, addressing allegations of misleading brokerage clients. The settlement includes USD 61 million in civil fines and USD 90 million in customer reimbursements, with the bank neither admitting nor denying wrongdoing.

The largest case involves USD 10 million in fines and USD 90 million in reimbursements related to “conduit” products, where customers’ funds were pooled for private equity or hedge fund investments. The SEC claims JPMorgan controlled share timing, leading to potential volatility. In another case, the bank was fined USD 45 million for not disclosing the benefits it and its brokers received from in-house investments over third-party options.

JPMorgan stated it is “pleased to settle” and strives to maintain high client service standards. The SEC also noted the bank voluntarily reimbursed USD 15.2 million to clients after recommending mutual funds instead of lower-cost ETFs.