JPMorgan Chase and Company, an international banking firm, announced this week that it will no longer allow Prime Brokerage clients to buy shares in several US cannabis companies starting Monday.
Trading restrictions apply to US cannabis companies that are “directly connected to marijuana activity” and that are not listed on the Nasdaq, New York Stock Exchange or Toronto.
“JP Morgan (JPMS) has put in place a framework that complies with US money laundering laws and regulations by restricting certain activities in US cannabis-related securities,” the bank said. He wrote to clients in a letter cited by Reuters.
Under the new policy, JP Morgan will no longer allow new purchases or short positions in “plant-friendly” cannabis business stock after November 8. Customers who already have positions in affected companies can, however, liquidate their current holdings. ..
The world headquarters of JP Morgan Chase & Co. filmed on April 17, 2019 in New York (Photo… [+] by Johannes EISELE/AFP)
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Steve Hawkins, CEO of the US Cannabis Council, said in a statement: “The publicly traded cannabis company operates fully in compliance with the law and the industry is poised for tremendous growth. ”
“JP Morgan’s new policies are regressive, at odds with the majority of Americans who want legally regulated marijuana, and self-destructive,” Hawkins added. “The end of the federal marijuana ban is near and the industry is already booming.”