JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) will reportedly pay $151 million to settle five cases with the US Securities and Exchange Commission (SEC), addressing allegations of misleading brokerage disclosures.
According to news sources in the US, the settlement includes $61 million in fines and $90 million in customer reimbursements. JPMorgan, without admitting wrongdoing, agreed to the terms.
The largest case involves a $10 million fine and $90 million reimbursement to customers invested in “conduit” products, which pooled funds to invest in private equity or hedge funds. The SEC said JPMorgan’s control over sales timing exposed customers to market risks.
In separate cases, JPMorgan was fined $45 million for not disclosing benefits from promoting in-house investments. It also reimbursed $15.2 million for recommending mutual funds over less costly exchange-traded funds.