JP Morgan Chase & Co's brokerage unit will pay $4 million to settle allegations it misled customers about the form of compensation it paid to brokers, the U.S. Securities and Exchange Commission said on Wednesday.
The case stems from comments on the company's private banking website, which falsely stated that advisers are paid "based on our clients' performance" and that "no one is paid on commission," the SEC said in a statement.
Advisers, however were paid salaries and discretionary bonuses based on various factors, not client performance, the SEC said.
"There was no allegation that the mistake made years ago was intentional or that any client was harmed,” a JP Morgan spokesman said. JPMorgan, which neither admitted nor denied the SEC's findings, has improved its procedures to prevent a recurrence, the spokesman said.
(Reporting by Suzanne Barlyn; Editing by Andrew Hay)/p>