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EU financial services: ECB penalises J.P. Morgan SE for capital requirement misreporting; ESMA fines REGIS‑TR for EMIR/SFTR breaches and sets expectations for AAR representativeness (20 February 2026)

Published on: 20 February 2026

Published by a LexisNexis EU Law expert
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EU financial services developments ECB sanctions J.P. Morgan SE for capital requirement reporting breaches

The European Central Bank (ECB) has levied two administrative fines totalling €12.18 million (€12,180,000) on J.P. Morgan SE after the bank submitted incorrectly calculated risk-weighted assets. From 2019 to 2024, it declared risk-weighted assets lower than they should have been. This stemmed from the misclassification of corporate exposures over 15 consecutive quarters, leading to the application of a credit risk weight below that required by banking rules. The ECB further found that, for 21 consecutive quarters, the bank improperly excluded certain transactions when determining risk-weighted assets for its credit valuation adjustment risk, which reflects the possibility that the counterparty to a derivatives contract could default. The ECB concluded that both infringements involved serious negligence, driven by clear shortcomings in the bank’s internal processes. Its internal controls did not identify the breaches in a timely manner...

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