SEC Fines 11 Firms for Recordkeeping Failures in Off-Channel Communications

Posted on October 21st, 2024 at 11:44 AM
SEC Fines 11 Firms for Recordkeeping Failures in Off-Channel Communications

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) continues its strict enforcement of recordkeeping requirements, fining 11 firms a combined $88.2 million for failing to preserve electronic communications. According to ThinkAdvisor, these firms, including broker-dealers and investment advisers admitted to violating federal securities laws by using unauthorized messaging apps and other off-channel communication methods.

The penalties were imposed as follows:


- Stifel, Nicolaus & Co. Inc.: $35 million
- Invesco Distributors Inc. and Invesco Advisers Inc.: $35 million
- CIBC World Markets Corp. and CIBC Private Wealth Advisors, Inc.: $12 million
- Glazer Capital LLC: $2 million
- Intesa Sanpaolo IMI Securities Corp.: $1.5 million
- Canaccord Genuity LLC: $1.25 million
- Regions Securities LLC: $750,000
- Alpaca Securities LLC: $400,000
- Focused Wealth Management Inc.: $325,000

However, the SEC's investigation revealed extensive use of unauthorized communication methods by other firms, involving personnel at various levels, including senior leadership. The SEC’s broader crackdown on texting and unauthorized apps has led to over $3 billion in fines, including recent penalties totaling $393 million against 26 firms like Edward Jones and LPL Financial.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

September 11, 2025
Montana Federal Judge Allows Family's Premium Financing Claims to Proceed

A federal judge in Montana has allowed a family to move forward with negligence, fraud, and unjust enrichment claims tied to a premium-financed life insurance arrangement valued at $67.5 million.

September 10, 2025
Arizona Man Sentenced to 30 Years for Multi-Million Dollar Ponzi-Style Fraud

An Arizona man has been sentenced to 30 years in prison for running a Ponzi-style investment scheme that defrauded more than 100 victims out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Mexico.

September 9, 2025
Easterly ROCMuni Fund's Steep Decline Spurs Potential Investor Lawsuits

The Easterly ROCMuni High Income Municipal Bond Fund (RMHIX) has suffered a dramatic collapse, losing nearly half its value in June and now trading at a net asset value (NAV) of $2.95 per share.