JPMorgan’s ‘Eye-Opening’ Penalty Signals SEC Whistleblower Focus

A JPMorgan Chase & Co. unit’s $18 million settlement with the Securities and Exchange Commission underscores the agency’s aggressive approach to protecting whistleblowers.

The SEC has emphasized enforcing a whistleblower protection rule in recent months, bringing a series of actions against companies for language in employee agreements that the agency viewed as discouraging people from reporting wrongdoing.

The settlement Tuesday with J.P. Morgan Securities LLC is among the first to target agreements with customers, adding a new layer to the SEC’s recent efforts. And the penalty—the largest of its kind—serves as a warning to other companies.

“I’m sure there are ...