JPMS has agreed to pay a $3 million fine and accept a censure from FINRA for bad data and reporting practices.
Executive Summary
“J.P. Morgan Securities LLC (JPMS) has reached a settlement with the Financial Industry Regulatory Authority (FINRA) over a series of short interest reporting violations spanning more than 16 years. The firm will pay a $3 million fine and accept a censure as part of the settlement, which addresses a range of inaccuracies in its short interest reporting from 2008 to 2024.“ - GRC Report
- J.P. Morgan Securities LLC (JPMS) has settled with the Financial Industry Regulatory Authority (FINRA) over short interest reporting violations spanning more than 16 years.
- The firm will pay a $3 million fine and accept a censure as part of the settlement.
- JPMS submitted inaccurate reports for approximately 820,000 short interest positions, involving 77 billion shares, from June 2008 to August 2024.
- The errors included overreporting and underreporting short interest positions, and failing to implement an adequate supervisory system.
- Specific mistakes included incorrect reporting of customer positions, exclusion of key positions from Canadian and Latin American securities, and overreporting tied to dividend reinvestment activity.
- JPMS has taken steps since 2020 to address these issues, including enhanced reviews and better oversight of key data.
- The settlement serves as a reminder of the importance of maintaining high standards for compliance and reporting within the financial services industry.
You can find more details in the full article [here]