Beware of Messaging App Crackdown on Wall Street

From a practical perspective, the actions provide a clear indication of the record-keeping and supervisory expectations of the SEC and CFTC and offer insight into how firms can improve compliance efforts.

These enforcement actions against broker-dealers, swap dealers, and futures commission merchants, combined with $200 million in fines issued in December 2021, brings the total for record-keeping lapses to more than $2 billion.

Given that prior fines for record-keeping failures were in the seven-figure range, these penalties coupled with mandatory remedial actions, including the engagement of third-party compliance consultants, reflect a new regulatory reality.

Source: Beware of Messaging App Crackdown on Wall Street