In the file of this week, the Financial Industry Regulatory Authority (Finra) said that it had controlled JP Morgan Securities and imposed a fine of $ 150,000 after finding shortcomings in its supervisory system to provide a preliminary bulletin to institutional investors in primary public offers (IPOS).
According to Finra, between January 2018 and December 2021, the company’s written supervisory measures are not designed reasonably to ensure compliance with the requirements of the Federal Securities Law.
The organizer explained that under Article 15c2-8 (B) of the Securities Exchange Act 1934, companies must provide customers who expect to participate in the public subscription with a preliminary bulletin at least 48 hours before sending confirmation for sale.
Fendra said that the GB Morgan supervisory system was not sufficiently fulfilled whether the delivery had happened.
For most of the 400 subscriptions that were almost distributed during the review period, there was no supervisory examination on whether the founders of founders had received the required documents.
In some cases, it was said that the customers who refused to hand over the mailing list of paper copy were not added, unlike the company’s procedures.
The organizer noted that JP Morgan identified some shortcomings in October 2021 and then reviewed its procedures in December 2021 and again in January 2024.
Without admitting or denying the results, JP Morgan agreed to the sanctions, which includes blame and a fine of $ 150,000. The company also waived any right to compete for its ability to pay.