Off-Channel Communication Still a Major Regulatory Focus
NEWS AND ALERTS
Brief Introduction
BNP Paribas, along with its broker-dealer, has agreed to an undisclosed fine with regulators related to employee off-channel communications.
It could be estimated that the cost to the company may reach over $100 million. The resolution still needs to be approved by both the CFTC and SEC.
What’s Happening
- Regulators have made electronic recordkeeping a major focus during investigations.
- Multiple industry-leading firms were fined millions of dollars in the fall of 2022 in the first of many expected SEC punishments related to recordkeeping failures.
- BNP Paribas was probed by both the SEC and the CFTC due to alleged failures to maintain business communications.
Protecting Your Firm
- Ensure employees are properly trained in the communication policies of your firm.
- Select the proper communication recordkeeping platform.
- Document proper supervision and enforcement of firm policies.
Vigilant’s Conclusion
At a time when regulators have set their sights on recordkeeping failures, it is vital for firms to ensure they have a strong compliance program to limit their exposure to regulatory headaches.
It is possible to maintain message compliance with the proper compliance culture. If you are concerned your recordkeeping practices may draw unwanted attention from regulators, reach out to us today so we can provide a professional evaluation of your procedures.