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The SEC has fined 11 firms for failing to maintain proper communications records. These penalties stem from the firms’ misuse of messaging platforms and inadequate compliance with record-keeping regulations. The fines highlight the SEC's ongoing crackdown on improper documentation practices, which are crucial for regulatory oversight and ensuring market integrity. This enforcement action reinforces the importance of compliance and transparency in financial communications. #SEC #Regulation #Compliance #FinancialServices #RecordKeeping

Compliance is Critical—No Matter the Size of Your Business Recent SEC enforcement against 26 financial firms, totaling $392.75M in fines, is a wake-up call for businesses of all sizes. These violations—stemming from poor recordkeeping of electronic communications—underscore the importance of maintaining compliance, even with informal communication channels like texting and social media. 👉 What can mid-sized and smaller firms learn? Q: My business is small. Do I really need to maintain communication records? A: Yes! Regulators apply recordkeeping rules to companies of all sizes. Failing to archive communications can lead to hefty fines and increased scrutiny. Q: How can I ensure employees aren’t using personal devices for risky business communications? A: Implement a clear policy banning the use of personal devices or require archiving of all business-related communications on those devices. Tools like mobile device management (MDM) can help enforce these policies. Q: What should I do if I discover a compliance breach? A: Report the issue proactively. The SEC reduced penalties for companies that self-reported. Acting early shows a commitment to compliance and can help mitigate fines. Q: How can I manage compliance with limited resources? A: Leverage affordable third-party tools that can help automate communication archiving and compliance tasks. 💡 Protect your business by fostering a strong culture of compliance from the top down. #nexuscompliance #Compliance #SEC #SmallBusiness #ComplianceCulture #Leadership #Recordkeeping

Another round of SEC fines to firms for failures surrounding the use of WhatsApp and record-keeping. There have also been rumours in the UK about an upcoming crackdown from the FCA in this area, following the various SEC and the recent Ofgem fines. This remains a key area of focus for regulators, firms should continue to review their operational arrangements and controls to ensure they remain in compliance with regulatory expectations and requirements. We are of course always happy to discuss best practices and advise as required. #compliance #hedgefunds

Stay ahead of regulatory scrutiny with insights from MCO (MyComplianceOffice)'s latest article on the recent U.S. Securities and Exchange Commission and Commonwealth Fund for Technical Co-operation (CFTC) enforcement sweep. Discover why robust monitoring and record retention are crucial to prevent penalties and ensure compliance. Read the full article to learn more and explore how MCO (MyComplianceOffice) can support your compliance needs. Transform your approach to regulatory challenges—let's set up a conversation today! #mycomplianceoffice #enforcements #eComms

(CFO Dive) Dive Brief: The Securities and Exchange Commission fined 12 investment advisers, broker-dealers and other financial services companies a total of $88 million for breaking securities laws by failing to preserve employees’ electronic communications. 🔹 The firms — including CIBC World Markets, Invesco Distributors and Stiflel, and Nicolaus & Company — admitted the facts of the agency’s orders and have begun improvements to align with regulations, the SEC said Tuesday. 🔹 “Widespread and longstanding failures, including where those failures potentially hinder the commission’s investor protection function by compromising a firm’s response to SEC subpoenas, may result in robust civil penalties,” SEC Enforcement Division Director Gurbir Grewal said in a statement. He applauded firms that “self-report” flaws to the agency, noting they “may receive significantly reduced penalties.” #SEC #Advisors #BrokerDealers #electroniccommuncations #enforcement #Buckler #regulations https://lnkd.in/ec9HwSu8

There was yet another SEC and CFTC enforcement sweep for off-channel communications and recordkeeping failures this week, targeting 26 firms with combined fines nearing $400 million. Three firms self-reported issues and received significantly lower penalties - highlighting the importance of monitoring for potential violations along with effective record retention to stay compliant. Read about the ongoing consequences of failure to effectively manage communications compliance in our blog: https://hubs.ly/Q02LwXJW0 And if you'd like to chat about how we help firms prepare to stand up to the regulatory scrutiny, set up some time right here! https://hubs.ly/Q02LwVmL0 #Compliance #ComplianceTechnology #CommunicationCompliance #CommunicationsMonitoring #CommunicationsSurveillance #CommunicationsArchiving #SEC #SECEnforcement #CFTC #ConductRisk #EmployeeCompliance

In this article by Smarsh, read about the latest update regarding off-channel enforcement. #RegulatoryUpdate #Compliance #Fintech

Even for those of us in our mid-40s, it's hard to remember a time when texting wasn't common place. The ability to reach for our phone and send a quick message to a family member, friend, or colleague. Nonetheless, as common place as this method of communication has become, when it comes to using it for business purposes as an investment adviser or broker-dealer, it is vital that you are capturing, reviewing, and maintaining these records. Even (and perhaps especially) if it is occurring via a representative's personal cell phone. Whether you're simply setting appointments and sending appointment reminders or providing in depth information with respect to customer assets (don't forget your encryption!), you need to ensure that you have systems in place to meet your record keeping requirements. #SEC #investmentadviser #brokerdealer #booksandrecords #RIA #FINRA #compliance

Have you heard the latest news? Last week, it was announced that 16 firms will pay 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 $𝟖𝟏 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐜𝐨𝐦𝐛𝐢𝐧𝐞𝐝 to settle widespread recordkeeping failures due to the use of unapproved communication tools. Here’s what we — and every other firm — can learn from this announcement: https://ow.ly/epzH50QCreX #SEC #Recordkeeping #RegulatoryCompliance #RegTech #OffChannelCommunications #Communications

It is very important to incorporate controls in your firms policies and procedures, to cover this type of correspondence. This is going to be one of the top violations citied during upcoming examinations this year from the regulators.