Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

SEC Takes Action Against 11 Wall Street Firms for Record-keeping Violations

Posted on August 18th, 2023 at 11:31 AM
SEC Takes Action Against 11 Wall Street Firms for Record-keeping Violations

From the desk of Jim Eccleston at Ä¢¹½´«Ã½ 

The Securities and Exchange Commission (SEC) has charged 11 firms with significant and longstanding failures to uphold electronic communication preservation regulations.

The firms have accepted the allegations detailed in their respective SEC orders and acknowledged their violation of recordkeeping provisions under federal securities laws. In response, they have committed to paying $289 million in penalties while initiating enhancements to their compliance policies and procedures to rectify these breaches. The firms have agreed to pay combined penalties as outlined below.

  • Ä¢¹½´«Ã½lls Fargo Securities, LLC, together with Ä¢¹½´«Ã½lls Fargo Clearing Services, LLC
    and Ä¢¹½´«Ã½lls Fargo Advisors Financial Network, LLC, agreed to pay a $125 million
    penalty
  • BNP Paribas Securities Corp. and SG Americas Securities, LLC have each agreed
    to pay penalties of $35 million
  • BMO Capital Markets Corp. and Mizuho Securities USA LLC have each agreed to
    pay penalties of $25 million
  • Houlihan Lokey Capital, Inc. has agreed to pay a $15 million penalty
  • Moelis & Company LLC and Ä¢¹½´«Ã½dbush Securities Inc. have each agreed to pay
    penalties of $10 million
  • SMBC Nikko Securities America, Inc. has agreed to pay a $9 million penalty

The SEC's investigation unveiled persistent and long-established instances of "off- channel" communications across all 11 firms. According to the SEC, the firms admitted that their employees frequently utilized personal messaging platforms on devices like iMessage, WhatsApp, and Signal to discuss their employers' business activities since at least 2019. Most of these communications were not maintained or preserved, infringing upon federal securities laws. Consequently, some of these firms likely hindered the Commission's access to these off-channel communications during various SEC inquiries. These failures extended across different levels of personnel, including supervisors and senior executives.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. Ä¢¹½´«Ã½ will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.