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JP Morgan to pay $2.9M in settlement with securities regulators

March 31. 2014 1:30PM

CONCORD - New Hampshire will receive $235,210 in a settlement with JP Morgan over the financial services firm's failure to properly register sales assistants across the country.The New Hampshire Bureau of Securities Regulations (BSR) and members of the North American Securities Administrators Association (NASAA) finalized a consent order Monday with JP Morgan Securities LLC in which it agreed to pay more than $2.9 million to the 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.BSR led the regulatory investigation, coordinating with several states nationwide as part of an NASAA working group."Compliance with the registration requirements for securities sales people is a very important part of protecting investors," Eric Forcier, bureau staff attorney, said. "We applaud JP Morgan's cooperation in correcting this situation and accepting its responsibility."The bureau found that certain JP Morgan sales assistants who were authorized to accept securities orders from clients were not appropriately registered to conduct such business.In addition, JP Morgan used an order entry system that did not record the identity of individuals taking orders. The consent order notes the firm has since made several efforts to remedy the problems, including development of an enhanced trading system and improved policies and procedures.JP Morgan also will pay $10,000 directly to NASAA, a voluntary association whose members includes state, provincial and territorial securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico. The bureau has participated in four settlements in the past two years resulting in $20 million in fines and penalties paid to NASAA members.

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