Published on Dec 14th, 2021 |


News & Alerts

According to a Wall Street Journal article written on Monday, December 13th, a well known Investment Banking Company is working towards the final stages of paying a $200 Million fine, coming together on a settlement with the SEC and the Commodity Futures Trading Commission.

What is the Main Cause, and Key Takeaways?

  • Main Cause:
    • Failure to properly monitor employees’ messages.
  • Key Takeaways:
    • The investigation took place leading up to and during the pandemic.
    • This is the first settlement to appear from a Regulatory Sweep into how banks oversee traders’ messages.
    • It is a requirement for Wall Street companies to attentively monitor communication involving their business.
    • There have been a number of US SEC enforcement staff that have been in contact with multiple banks to check if they have been monitoring work-related communications.

Final Conclusion

This serves as a warning for the entire Financial Industry, especially under the new Regulatory regime. Firms should examine Text Messaging Policies including client servicing members of the team to see if they are utilizing text messaging. It is crucial to stay on top of, and comply with, SEC updates and rule changes, especially as we enter the new year. At Vigilant, we have been in the industry for 17 years and have over 300+ years of experience uniting Regulatory Compliance, Legal, and Financial Expertise. If you would like to learn more about Vigilant, contact us here.