Tag: Off-Channel Communications

SEC sued by trade association for details on record-keeping probe | Reuters

A financial industry trade association has sued the U.S. Securities and Exchange Commission for information about the agency’s multibillion-dollar crackdown on how banks and other firms handle work-related communication on personal devices. The American Securities Association said in its lawsuit in Tampa federal court on Thursday that the SEC had improperly rejected its request under federal public records law for…

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Private-Equity Giants Near Settlements With SEC Over Texting Violations – WSJ

Some of Wall Street’s biggest private-equity firms said they are negotiating settlements with the U.S. markets regulator over their employees’ use of banned communication channels. Blackstone, TPG and Carlyle Group disclosed in their latest quarterly filings that they have been cooperating with the U.S. Securities and Exchange Commission’s record-keeping investigations and have begun discussions with the agency’s enforcement staff about…

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SEC’s WhatsApp Probe: Citadel, KKR, Blackstone Seek Ways to Blunt Penalties – Bloomberg

Top hedge funds and private equity firms including Citadel, KKR & Co. and Blackstone Inc. are discussing ways to blunt penalties by the Securities and Exchange Commission stemming from their use of disappearing messaging apps. With the regulator stepping up efforts to police Wall Street’s electronic communications, the firms have held talks about how to design a legal strategy and…

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WhatsApp All Over Again: The SEC Brings More Recordkeeping Charges Against Broker-Dealers and Investment Advisers for Off-Channel Communications | Mayer Brown – JDSupra

It is important to note that in each of these cases, the off-channel communications at issue were conducted on the personal devices of the firm’s employees. In addition to creating recordkeeping and monitoring challenges and related examination risks—as outlined by the SEC in these and prior, similar proceedings—the use of personal devices for firm business raises complicated issues during regulatory…

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More Cell Phones – Bloomberg

The US Securities and Exchange Commission does various things, but one thing that it does these days is charge financial services firms large fees for using mobile phones. I mean, it doesn’t provide the phones or anything. But the SEC has developed a theory that it is illegal for employees of securities brokerages and investment managers to use WhatsApp or…

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Sixteen Firms to Pay More Than $81 Million Combined to Settle Charges for Widespread Recordkeeping Failures

The Securities and Exchange Commission today announced charges against five broker-dealers, seven dually registered broker-dealers and investment advisers, and four affiliated investment advisers for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of…

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Are firms prepared for wave of messaging fines headed for Britain? | Global Investor Group

The last few years have seen market regulators dole out record numbers of fines to financial institutions over their failure to adequately monitor employee communications on instant messaging applications like WhatsApp. According to Securities and Exchange Commission (SEC) enforcement division chief Gurbir Grewal, the regulator has filed charges against 40 financial firms and imposed more than $1.5bn (£1.2bn) in fines…

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WhatsApp-ening? The SEC’s “Off-Channel” Communications Sweep | Woodruff Sawyer – JDSupra

One recent enforcement trend has been especially impactful to the bottom line, resulting in the SEC and the Commodity Futures Trading Commission (CFTC) penalizing registered entities more than $2 billion in less than two years for a common practice. What is this deeply troubling behavior? Securities or commodities fraud? Try again. Deceptive practices that harm customers or their investments? Nope.…

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Texting: Wall Street’s Latest Dilemma – WSJ

“Given this kind of zero-tolerance policy, every component of e-communications, every kind of platform is going to be relevant,” said Marc Gilman, general counsel and vice president of compliance at electronic communications compliance provider Theta Lake. “They need to rely on technical support to capture these off-channel business communications.” In addition, the various communication tools and features that became more…

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