JP Morgan affiliates to pay $151M for misleading investors
Actions include failure to provide disclosures to investors, breach of fiduciary duty, prohibited joint transactions, failures to make recommendations for customers
By Ovunc Kutlu
ISTANBUL (AA) - Two affiliates of investment banking firm JP Morgan agreed to pay more than $151 million in combined civil penalties and voluntary payments to investors to resolve four actions.
Actions regarding J.P. Morgan Securities LLC (JPMS) and J.P. Morgan Investment Management Inc. include failure to provide disclosures to investors, breach of fiduciary duty, prohibited joint transactions and principal trades, and failures to make recommendations in the best interest of customers.
The US Securities and Exchange Commission (SEC) said Thursday JPMS made misleading disclosures to brokerage customers who invested in its “Conduit” private funds products, which pooled customer money and invested it in private equity or hedge funds that would later distribute to the Conduit private funds shares of companies that went public.
“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,” said Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement.
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