FINRA Fines J.P. Morgan Securities $250K for Margin Disclosure Failures

J.P. Morgan Securities LLC (JPMS) has agreed to pay a $250,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA) over alleged failures related to margin account disclosures.

According to FINRA, from October 2010 through September 2024, JPMS failed to establish procedures to ensure that certain customers received margin account disclosures required by Rule 10b-16(a)(2) of the Securities Exchange Act of 1934 on their account statements.

As a result, between October 2010 and February 2024, the firm failed to provide certain required information—including annual interest rates charged—on 56,254 account statements corresponding to 4,463 customer accounts. FINRA stated that JPMS thereby violated Exchange Act Rule 10b-16(a)(2) and FINRA Rule 2010.

Additionally, from at least October 2010 through September 2024, JPMS violated FINRA Rules 3110(a) and (b) and 2010, as well as NASD Rule 3010, by failing to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Exchange Act Rule 10b-16(a)(2).

In addition to the fine, the firm has agreed to a censure.