The U.S. Securities and Exchange Commission (SEC) announced today that it has made a decision against J.P. Morgan Securities LLC (J..P.Morgan Securities LLC, JPMS) settlement of allegations that hundreds of advisory and brokerage clients have been prevented from reporting potential securities law violations to the SEC。JPMS agrees to pay $18 million civil penalty to settle charges。

According to the SEC's order, from March 2020 to July 2023, JPMS often required retail customers to sign confidentiality disclaimers if they received more than $1,000 in credit or settlement from the company.。

The agreement requires the client to keep confidential the settlement, all essential facts relating to the settlement and all information relating to the account in question。In addition, although the agreement allows customers to respond to SEC inquiries, it does not allow customers to contact the SEC on their own initiative。

The SEC order found that JPMS violated Rule 21F-17 (a) under the Securities Exchange Act of 1934, which is a whistleblower protection rule that prohibits any action to prevent individuals from communicating directly with SEC staff about possible violations of securities laws.。JPMS, which neither acknowledges nor denies the SEC's findings, agreed to accept reprimands, stop violating whistleblower protection rules and pay a $18 million civil penalty.。