The U.S. Securities and Exchange Commission is investigating private equity firm One Equity over communications with investors, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

One Equity, which was once JPMorgan Chase's buyout arm, has recently been in settlement talks with regulators that have sought a fine of as much as $5 million, although One Equity has not agreed to that amount and the penalty could be lower, the WSJ report said.

(Reporting by Gursimran Kaur in Bengaluru)