The Securities and Exchange Commission reached a $4 million settlement with J.P. Morgan's brokerage business based on allegations the bank made false and misleading statements about broker compensation from 2009 to 2012. The SEC said J.P. Morgan falsely stated on its private banking website and in marketing materials that advisers are compensated "based on our clients' performance; no one is paid on commission." Compensation was not based on client performance but instead consisted of a salary and a discretionary bonus based on several other factors. It wasn't until May 2012 - more than three years after it was first made - that the misstatement was corrected by J.P. Morgan in some marketing materials. The bank neither admitted nor denied the allegations.
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