SEC Nabs $81 Million in Fines in Recordkeeping Sweep
By Dean Seal
The Securities and Exchange Commission has secured $81 million in fines from 16 different firms over widespread violations of recordkeeping requirements tied to the use of text messages and other off-channel communications to conduct business.
The Wall Street regulator said Friday that the group of broker-dealers and investment advisers admitted facts in the SEC's orders against them, including that their violations broke federal securities law. The firms have agreed to settle the claims with civil penalties and overhauls of their compliance protocols.
Among the firms was Northwestern Mutual Investment Services, Guggenheim Securities and Oppenheimer & Co. The smallest fine will be paid by Huntington Investment Company, Huntington Securities and Capstone Capital Markets, which collectively self-reported and will pay $1.25 million.
"Huntington's penalty reflects its voluntary self-report and cooperation," SEC Enforcement Director Gurbir Grewal said in a statement.
The SEC said its investigation into the firms uncovered "pervasive and longstanding uses of unapproved communication methods."
The agency has been cracking down on financial institutions for their use of off-channel communications and failure to preserve those communications, as required by federal securities law.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 09, 2024 09:44 ET (14:44 GMT)
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