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

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

July 11, 2025
FINRA Advances Proposal to Allow Limited Use of Performance Projections

The Financial Industry Regulatory Authority (“FINRA”) is moving forward with a proposal that would give broker-dealers limited ability to market performance projections and targeted returns under specific conditions.

July 10, 2025
SEC Permanently Bars Brite Advisors USA Over Custody Rule Violations and Undisclosed Conflicts

The SEC has permanently barred Brite Advisors USA from operating as an investment adviser, citing serious custody rule violations and undisclosed conflicts of interest tied to its offshore affiliate, as reported by Financial Advisor News.

July 9, 2025
UBS Confirms Data Breach After Cyberattack on External Vendor

UBS Group AG has confirmed that a cyberattack on one of its third-party suppliers resulted in stolen company information, though no client data was compromised.