J.P. Morgan Clearing Corp. (CRD #28432, Brooklyn, New York) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $200,000.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it included non-margin equity securities in certain portfolio margin accounts and improperly applied strategy-based maintenance margin requirements that were not permitted for positions held in a portfolio margin account. The findings stated that because non-margin equity securities could not be held within a portfolio margin account unless the firm applied a 100 percent regulatory maintenance requirement on a daily basis, the accounts at issue were under-margined.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
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