JPMorgan to pay more than $135 million for improper handling of ADRs
27 Dec 2018

JPMorgan Chase & Co (JPM.N) will pay over $135 million to settle charges it mishandled so-called “pre-released” American Depositary Receipts (ADRS), the Securities and Exchange Commission announced on Wednesday.

The regulator said the investment bank improperly provided ADRs, which are U.S. securities that represent foreign shares of foreign companies, to brokers even though the brokers and their clients lacked the corresponding foreign shares.

The bank did not admit or deny the SEC’s findings, but agreed to pay back ill-gotten gains and additional penalties, the SEC said.

JP Morgan declined to comment. In August, the bank said it was under investigation by the SEC for its handling of ADRs.

– By Pete Schroeder, Reuters, 26 December 2018.

Link to Reuters.

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