Wall Street's self-regulator, the Financial Industry Regulatory Authority, has hit J.P. Morgan Securities LLC with another fine.
Over accusations of failure to properly conduct background checks on about 95% of its nonregistered associates, the firm must pay $1.3 million. J.P. Morgan neither admitted nor denied FINRA's charges.
The claims of inadequate background checks include failure to obtain fingerprints in a timely manner and failure to screen for criminal convictions beyond those related to federal banking laws and an internal list. In addition, FINRA found that four individuals were allowed to be associated with the firm, despite being subject to a statutory disqualification due to criminal convictions.
The allegations and the fine cover violations from January 2009 through May 2017.
In September, FINRA fined J.P. Morgan $1.1 million on allegations that it inadvertently over-advertised its trade volume.