The Financial Industry Regulatory Authority fined J.P. Morgan Securities LLC $1.1 million for failing to disclose 89 internal reviews or allegations of misconduct by its representatives and associated persons over six years.
From January 2012 to April 2018, J.P. Morgan Securities failed to disclose, or timely disclose, 89 internal reviews or allegations of misconduct including misappropriation of customer and company funds, borrowing from customers, forgery, falsification or alteration of documents, unauthorized trading, making unsuitable recommendations, structuring and other suspicious activity.
The delays prevented FINRA from pursuing potential disciplinary action against 30 former company representatives over whom the jurisdiction expired before the company disclosed the allegations.
FINRA has required an undertaking by the company to certify within 60 days that it has taken appropriate corrective measures.
