JPMorgan Chase Fined $151 Million for Failing to Disclose Risks to Investors
JPMorgan Chase has agreed to pay $151 million to settle five enforcement cases brought by the US Securities and Exchange Commission (SEC). The bank will cover civil fines and customer reimbursements after failing to fully disclose risks, fees, and conflicts of interest.
The settlements follow claims that the firm did not properly inform retail investors about key details of certain investment products between 2017 and 2024.
In the largest of the cases, JPMorgan will pay a $10 million fine and return $90 million to customers invested in 'conduit' products. The SEC found that the bank did not reveal it had full control over when to sell shares or how many to trade, leaving investors exposed to market risk without their knowledge.
Another $45 million fine was imposed for not disclosing financial incentives tied to recommending in-house investments over similar third-party options. The bank also voluntarily repaid $15.2 million to 10,500 retail brokerage customers after steering them toward more expensive exchange-traded funds (ETFs) without adequate justification. The SEC ruled that JPMorgan’s actions violated investor protection laws, particularly those preventing self-dealing and conflicts of interest. Despite the settlements, the bank neither admitted nor denied the allegations. Across all five cases, the total includes $61 million in civil penalties and $90 million in customer refunds. Regulators noted that promotional materials often directed investors to consult advisors for full details on risks and costs, rather than providing clear upfront disclosures.
The settlements require JPMorgan to implement corrective measures, though the bank has not acknowledged wrongdoing. Customers affected by undisclosed risks and fees will receive reimbursements as part of the agreement. The SEC’s enforcement actions aim to ensure greater transparency in future investment recommendations.
