A JPMORGAN Chase unit will pay a US$18 million civil penalty to settle charges it violated whistleblower protection rules, the US Securities and Exchange Commission (SEC) said on Tuesday (Jan 16).

JPMorgan Securities impeded “hundreds of advisory clients and brokerage customers from reporting potential securities law violations” to financial regulators, the SEC said in a statement, adding that the company also agreed to cease the alleged violations.

From March 2020 through July 2023, the firm asked retail clients to sign confidential agreements if they were issued a credit or settlement from JPM of more than US$1,000, the SEC said. The agreements required the clients to keep the underlying facts of the regulators said.

Representatives for JPM did not respond immediately to request for comment. REUTERS