JPMorgan Chase to pay $4M to settle SEC charges that it misled customers on broker comp

JPMorgan Chase & Co. will pay $4 million to settle charges that it misled customers on how advisers in its U.S. private bank are compensated, according to the Securities and Exchange Commission. JPMorgan falsely stated on its private banking website and in marketing materials that advisers are compensated “based on our clients' performance; no one is paid on commission,” the SEC said Wednesday. While no commissions were received, the regulator found that compensation was not based on performance and J.P. Morgan Securities paid them a salary and discretionary bonus instead. J.P. Morgan Securities “misled customers into believing their brokers had skin in the game and were being compensated based on the success of customer portfolios,” Andrew J. Ceresney, director of the SEC enforcement division, said in an announcement. The misleading statements were made between 2009 and 2012. "There was no allegation that the mistake made years ago was intentional or that any client was harmed,” Kristen Chambers, a JPMorgan spokeswoman, said in an emailed statement. “We have further enhanced our procedures and processes to prevent a reoccurrence.”