JPMorgan Chase & Co. is reportedly in discussions to settle a case involving its failures to properly monitor employee communications, according to AdvisorHub.
The firm could pay about $200 million in sanctions following an investigation by the Securities and Exchange Commission and the Commodity Futures Trading Commission. The report, citing people familiar with the matter, said the total amount of the fine may change but a final deal could be reached by the end of the year.
The case stems from a probe into JP Morgan’s compliance with regulations requiring financial firms to monitor employee communications involving their business and customers. Compliance became more challenging for firms when many employees began working from home during the pandemic.
JP Morgan employees were ordered in June to set aside any messages related to work that were made on their personal devices. The company stated it was cooperating with regulators looking into “business communications sent over electronic messaging channels that have not been approved by the firm.” JP Morgan said recently it was involved in advanced settlement talks with regulators.
There was no immediate comment on the report of the potential settlement from JP Morgan, the SEC and the CFTC.
The attorneys at Lewitas Hyman include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. If your firm is facing an investigation from a regulatory agency, please contact us at (888) 655 6002 or through our online contact form.
