JPMorgan agreed to pay a total of 200 million penalties to settle regulatory violations related to its widespread recordkeeping and supervision failures.
On Friday, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) disclosed that J.P. Morgan Securities LLC (JPMS) admitted the charges against it.
The broker-dealer subsidiary of JPMorgan Chase & Co. (NYSE: JPM) said failed to maintain, preserve, and produce records particularly the communications of its employees about its securities businesses on their personal devices using text messages, WhatsApp, and personal email accounts.
Its conduct is a violation of Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-4(b)(4) and 17a-4(j) thereunder. It is also a violation of the Commodity Exchange Act (CEA) and regulations.
The SEC and the CFTC imposed monetary penalties of $125 million and $75 million respectively, against JPMorgan. Both regulators also required the company to cease and desist from future violations of the said laws and regulations.