SEC Investigation into JPMorgan's Advisory Account Aggregation
From the desk of Jim Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) has launched two investigations that may affect the interests of advisors and clients of JPMorgan Chase & Co.
The SEC has initiated an inquiry into specific aspects of advisory programs offered by J.P. Morgan Securities, the brokerage and investment advisory subsidiary of the bank. This information was disclosed in the bank's third-quarter report filed on November 1, as reported by AdvisorHub. The investigations focus on the aggregation of accounts for billing, the application of discounts to advisory fees, and the selection of portfolio managers, as outlined in the bank's 10Q report.
In the same filing, the bank stated that JPMorgan is addressing the SEC's requests concerning the timing of the firm's liquidation of shares distributed in-kind to specific investment vehicles that invest in third-party managed private funds. Without disclosing further particulars about the two investigations, JPMorgan affirmed its cooperation with the SEC on both matters.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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