NEW YORK - The Securities and Exchange Commission (SEC) has imposed an $18 million fine on JPMorgan Chase & Co. (NYSE:JPM) for obstructive clauses in customer agreements that hindered whistleblowing. These "confidential release agreements" silenced clients from discussing potential securities law violations after receiving "credits or settlements," which undermined investor protections by barring voluntary contact with the SEC. The agreements, which were active from March 2020 until July 2023, impacted more than 362 retail and brokerage clients, contravening Dodd-Frank Act whistleblower protections.This enforcement action by the SEC comes in the wake of a similar incident where investment firm D.E. Shaw & Co. was penalized $10 million for violating whistleblower protection rules. The contentious clauses offered financial settlements or credits to customers ranging from $1,000 to $165,000. However, they stipulated that customers could not initiate contact with regulators regarding possible legal infractions.JPMorgan has responded to the SEC's findings by amending these restrictive clauses and reaching out to former clients to reaffirm their right to report any suspected violations to government or regulatory entities, including the SEC. The firm "regularly asked clients" receiving over US$1000 to refrain from disclosing settlement specifics, thereby impeding proactive communications with regulatory agencies.J.P. Morgan Securities consented today to a cease and...
IBM reached a settlement with the federal government on Friday, agreeing to pay roughly $17 million to resolve allegations of illegal diversity, equity and inclusion practices. Acting Attorney Gen...