SEC Charges Multiple Firms for Recordkeeping and Regulatory Violations

The Securities and Exchange Commission (SEC) has charged 10 firms, including broker-dealers and investment advisers, for widespread and longstanding failures to maintain and preserve electronic communications, violating recordkeeping provisions of federal securities laws. The firms have admitted to the violations and agreed to pay a combined penalty of $79 million. The SEC's investigations revealed off-channel communications and the failure to preserve these communications, potentially hindering SEC investigations. The firms have also been ordered to implement improvements to their compliance policies and procedures.