The U.S. Securities and Exchange Commission (SEC) continues to focus on recordkeeping requirements.
On September 29, 2023, the SEC announced charges against 10 firms for failing to maintain or preserve the electronic off-channel communications in which their respective employees conducted business matters (in violation of federal recordkeeping requirements).
According to the press release, each of the 10 firms (which were a combination of broker-dealers, investment advisers, and dually-registered broker-dealers and investment advisers) failed to maintain or preserve electronic off-channel communications in which the broker-dealers’ employees discussed business matters and the investment advisers’ employees provided investment recommendations.
These charges are part of a continued focus on compliance with recordkeeping requirements. In just the previous month, the SEC charged 11 firms for similar recordkeeping violations (Press Release 2023-149) which contributed to the current total of 40 enforcement actions and nearly $1.6 billion in penalties under the books and records requirements of the federal securities laws.
Are your firm’s recordkeeping procedures ready for the scrutiny of an SEC examination?
If your business could use an evaluation of its compliance policies and procedures, or if you are looking for comprehensive compliance solutions, ASG can help.
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