- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-08-08T15:48:00
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) continued their crackdown on financial firms’ recordkeeping failures regarding employee use of off-channel communications for business with $555 million in total fines levied against nine institutions and their affiliates.
The penalties, announced Tuesday, mirror the agencies’ action last September, when they combined to fine nearly a dozen institutions more than $1.8 billion for widespread failures in monitoring, maintaining, and preserving electronic communications by employees. Of the latest group disciplined, Wells Fargo received the largest punishment in agreeing to pay $200 million total for admitted failures at several of its broker-dealer affiliates—an amount similar to fines the regulators have levied against other banks of its size.
“We’re pleased to resolve this matter,” a Wells Fargo spokesperson said in an emailed statement.
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The Securities and Exchange Commission and Commodity Futures Trading Commission have combined to levy nearly $3.5 billion in penalties (so far) against firms and their affiliates in response to recordkeeping failures regarding employee use of off-channel communications for business purposes.
Wells Fargo disclosed it is under investigation by the Securities and Exchange Commission regarding cash sweep options it provides to new investment advisory clients.
A dozen financial services firms were penalized by the Securities and Exchange Commission as the agency continues its enforcement sweep of recordkeeping violations regarding employee use of off-channel communications for business purposes.
A bank examiner and senior manager at the Federal Reserve Bank of Richmond pled guilty to insider trading after allegedly misappropriating confidential information on seven banks to make profitable trades.
New York-based investment firm Drexel Hamilton will pay more than $1.1 million in penalties, with four current and former employees paying fines as well over committing hundreds of violations of rules regarding the sale of municipal bonds.
A publicly traded cryptocurrency mining company will pay $10 million and completely change its business model to one with “lower corruption risk” as part of a settlement over violations of the Foreign Corrupt Practices Act (FCPA), two regulators announced.
