The Indiana Secretary of State’s office has announced a settlement with New York-based JPMorgan Chase & Co. (NYSE: JPM) over the company’s investment advisory business in Indiana. The $950,000 settlement comes after Connie Lawson’s office alleged the company did not disclose important information regarding its investment services to clients.
The Secretary of State’s Office says between 2008 and 2014, JPMorgan Chase did not inform clients of its use of a model that guided clients to purchase the company’s proprietary products. Lawson says there was no substantial difference between JPMorgan’s products and a third-party product.
"Investors have the right to know all the facts and to receive complete information when deciding to invest," said Lawson, "This right extends to a seasoned accredited investor or a novice investor."
JPMorgan Chase has since updated its disclosure practices and agreed to pay the civil penalty under the agreement with Lawson’s office.