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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInMorgan Stanley Fines Bankers More Than $1 Million Over Messaging Breaches – Bloomberg
Morgan Stanley fined some of its own bankers more than $1 million each for conducting business on WhatsApp and other messaging platforms, the latest fallout from an industrywide probe that saw US regulators impose the record penalties for monitoring lapses. The funds have either been clawed back from previous bonuses or will be docked from […]
SEC’s WhatsApp Probe Reaches Into PE With Apollo, Carlyle, KKR – Bloomberg
Financial regulators are looking at the biggest private equity firms’ use of WhatsApp and other messaging apps for work, in a signal that the US is ramping up its push to police Wall Street’s electronic communications. Apollo Global Management Inc., Carlyle Group Inc. and KKR & Co. said in regulatory filings this week that they […]
Every Buck You Lend, Every Text You Send, the SEC’ll Be Watching You
Take one look at your phone and count how many different message apps you have. WhatsApp, Facebook Messenger, Snapchat, Telegram, Signal, iMessage. Those are just some of the most popular messaging applications available right now and chances are you have more than one of those on your phone right now. If you are in the […]
SEC scrutiny into Wall Street communications shifts to investment funds – sources | Reuters
The SEC’s enforcement unit has sent inquiries to a number of funds and advisers asking for information about their protocols for so-called “off-channel” business communications as recently as last week, the four sources told Reuters. The agency has asked firms to preserve and produce documents and share information on policies related to the use of […]
Transparency for Thee, but Not for the SEC – WSJ
But based on my experience in a half-dozen currently active lawsuits involving records requests to federal agencies, including the SEC, political appointees and other federal regulators regularly engage in the same sort of practices. Regulators are bound by requirements similar to those covering banks and traders, thanks to laws such as the Freedom of Information […]
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 […]
Texting – Bloomberg
My point here is that when these rules were written, it would have been absurd to say that brokers had to “appropriately conduct their communications about business matters within only official channels.” Everyone understood, in 1948, that only a small sliver of business was conducted in formal letters and memoranda, and that mostly you’d talk […]