- 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.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
