J.P. Morgan Securities LLC (JPMS) has agreed to pay a fine of $140,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Between May 2018 and June 2024, JPMS submitted inaccurate and incomplete Form G-32 filings in connection with 718 primary offerings of municipal securities for which the firm served as underwriter.

Specifically, between May 2018 and July 2021, the firm’s Form G-32 submissions did not accurately identify the retail order period in connection with 369 primary offerings of municipal securities.

Between August 2021 and June 2024, in connection with 349 primary offerings of municipal securities, the firm’s Form G-32 submissions either did not accurately disclose a retail order period, did not identify one or more municipal advisors or obligated persons associated with the offering, and/or did not provide information related to credit enhancement.

Between June 2020 and November 2022, JPMS did not timely submit 26 official statements, advance refunding documents, and amendments to official statements to EMMA in connection with primary offerings of municipal securities for which the firm served as underwriter. The documents were submitted between one and 135 days late.

Therefore, JPMS violated MSRB Rule G-32.

From May 2018 to June 2024, JPMS’s supervisory system and written supervisory procedures (WSPs) were not reasonably designed to achieve compliance with its obligation, as an underwriter of primary municipal securities offerings, to submit accurate and complete Form G-32 filings to EMMA as required by MSRB Rule G-32(b).

Although the firm’s WSPs required a supervisor to review weekly reports regarding the firm’s Form G-32 filings, the weekly reports focused on timeliness and did not contain information related to the accuracy or completeness of the firm’s Form G-32 filings. The firm did not otherwise review its Form G-32 filings for accuracy or completeness during the relevant period.

From August 2021 to June 2024, the firm’s WSPs did not address the additional items of information required to be disclosed on Form G-32 pursuant to the August 2021 amendments to Form G-32. The firm did not provide training or written guidance regarding the August 2021 amendments to the personnel responsible for completing Form G-32 filings.

Therefore, JPMS violated MSRB Rule G-27.

On top of the $140,000 fine, the firm consented to a censure.