"An entity like Merrill may not avoid liability by using another broker to obtain fraudulently issued ADRs on its behalf," the SEC says.
JPMorgan's settlement with the SEC means all four depositary banks have been sanctioned for improper handling of "pre-released" ADRs.
The SEC says the bank allowed ADRs to be “pre-released” while not backed by actual shares, leaving them ripe for potential market abuse.
