JPMorgan Securities to pay $18m over anti-whistleblower practices

(Sharecast News) - JP Morgan Chase subsidiary, JPMorgan Securities agreed to pay an $18m penalty, it emerged on Tuesday, in response to allegations of violating whistleblower protection regulations by the US Securities and Exchange Commission (SEC). According to Reuters, the SEC said JPMorgan Securities hindered "hundreds of advisory clients and brokerage customers from reporting potential securities law violations".

It said the company also committed to ending its practices as part of the settlement.

Reuters said that according to the SEC, between March 2020 and July 2023 JPMorgan Securities asked retail clients to sign confidential agreements if they received a credit or settlement of more than $1,000.

The agreements compelled clients to maintain secrecy regarding the underlying facts of the regulators' findings.

Reporting by Josh White for Sharecast.com.