J.P. Morgan Securities Fined $3.25 Million for Supervision Failures J.P. Morgan Securities LLC has been fined $3.25 million by the Financial Industry Regulatory Authority (FINRA) for failing to supervise a registered representative's investment strategy from January 2016 to April 2020. The strategy involved high-yield securities using leverage, leading to significant customer losses during marke...

FNG - FX News Group

J.P. Morgan Securities Fined $3.25 Million for Supervision Failures J.P. Morgan Securities LLC has been fined $3.25 million by the Financial Industry Regulatory Authority (FINRA) for failing to supervise a registered representative's investment strategy from January 2016 to April 2020. The strategy involved high-yield securities using leverage, leading to significant customer losses during market volatility in March 2020. The firm failed to address red flags in the representative's trading activity. In response to customer losses, J.P. Morgan Securities has paid over $55 million in arbitration awards and settlements and offered $1.35 million to additional affected customers. The firm also agreed to a censure.

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Published on Apr. 7th, 2026 Published on Apr. 7th, 2026

Scenario: Conduct / Misselling Retail

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Apr. 1st, 2026

Take a look at this recent Q&A on Risk.net featuring Nedim Baruh and Patrick Naim: "Industrialising the challenge process: AI in operational risk scenario analysis"

Structured scenarios have significantly enhanced the way scenario analysis is carried out, especially when it comes to challenging assumptions. Exchanges with validation teams are far more robust compared to earlier, less structured methods. Many thanks to Nedim Baruh and Zoi Fletcher for this insightful discussion, and to Risk.net for sharing it.