Published on Aug 11th, 2023 |

Recent SEC Recordkeeping Charges | Vigilant Reacts

Vigilant Insights

Brief Introduction

As recently reported, the SEC has announced that there have been 11 Wall Street Firms charged with widespread recordkeeping failures totaling combined penalties of $289 Million.

Our Senior Vice President, Salvatore Faia II, Esq. and Vice President of Sales and Business Development, CJ Schaible, MBAwere quoted in Ignites and Financial Advisor IQ articles about the charges.

Observations from our Team

Observations from our Team

The SEC’s Division of Enforcement has indicated that investigations will continue to be widespread as recordkeeping failures plague the industry.

Salvatore Faia II argues these charges are likely to continue until the SEC is assured “that firms are capturing all communications in accordance with the books and records policy”.

CJ Schaible assessed that the SEC is “far from taking their foot off the gas pedal on examining/investigating firms regarding recordkeeping”.

For Firms looking to protect themselves from potential costly charges, CJ says the first step would be “archiving all business communication… to preserve this information for when the SEC comes in for an Examination/Investigation”. In addition, “closely monitoring all communication mediums of employees is just as important to help reduce the potential risk of fines and litigation”.

Off-Channel Communications continue to be a “top of mind” focus by the SEC and Division of Enforcement in 2023.

If you are in need of a Gap Analysis of your Firm’s Policies and Procedures, a Mock SEC Exam, or Compliance Support, contact us today to learn more about how we can help.

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