J.P. Morgan Securities LLC (JPMS) has agreed to pay a fine of $250,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From October 2010 through September 2024, JPMS failed to establish procedures to assure that certain customers received margin account disclosures required by Rule 10b-16(a)(2) of the Securities Exchange Act of 1934 (Exchange Act) on account statements.

As a result, during the period of October 2010 through February 2024, the firm failed to provide certain information in its margin account disclosures required by Exchange Act Rule 10b-16(a)(2), including the annual rates of interest charged, on 56,254 account statements corresponding to 4,463 customer accounts.

Therefore, JPMS violated Exchange Act Rule 10b-16(a)(2) and FINRA Rule 2010.

In addition, from at least October 2010 through September 2024, JPMS violated FINRA Rules 3110(a) and (b) and 2010, and NASD Rule 3010,2 by failing to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with Exchange Act Rule 10b-16(a)(2).

The firm has agreed to a censure in addition to the fine of $250,000.