SEC Recordkeeping Enforcements | Bernadette Murphy Insights
VIGILANT INSIGHTS
Introduction
The SEC’s recent charges related to recordkeeping in August clearly indicate that the SEC has no intention of relenting.
Twenty-six (26) Firms were charged over $390 million, including a Firm with less than $2 billion in AUM.
Vigilant Managing Director, Bernadette Murphy, MSL, was quoted in a Financial Advisor IQ article providing important insights and takeaways from this recent enforcement.
Bernadette Murphy Insights
Bernadette reminds everyone that statements made during enforcement announcements should serve as warnings to the rest of the industry.
Due to the heavy fines these actions can bring, Advisers should be regularly educated on the types of business communications that must be preserved.
Bernadette reminds Firms how important it is to have strict policies in place that clearly explain what communication channels are allowed. However, policies alone will not protect Firms if the employees are not complying; implementation and supervision is also required.
It is also highlighted by Bernadette on how compliance must ultimately exist at the employee level.
Vigilant’s Conclusion
Vigilant provides Compliance Support Solutions to help Firms maintain compliance with recordkeeping requirements. Employee Education, Email Review, and Policies and Procedures Development are just a few of many ways we can help.
The article mentions an industry concern that these enforcements could start involving retail RIAs. Firms should assess their Compliance Programs and put the effort in now to reduce the likelihood of costly charges in the future.