- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-06-18T15:10:00
Two senior officials from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) described how both agencies are committed to rooting out off-channel communications among registered entities for the long term.
“The off-channel communications issue will be with us for the next 50 years,” said Zachary Sturges, senior counsel at the SEC, during Compliance Week’s Financial Crimes and Regulatory Compliance Summit June 10 at Fordham Law School.
Texting and phone apps are the way traders under 40 communicate, Sturges said, and firms will have to use every means at their disposal—better technology, better policies, better training—to record and retain their business communications.
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The Department of Justice’s renewed scrutiny toward a corporation’s approach to the use of personal devices strengthens the case for companies to get away from bring your own device, a panelist at Compliance Week’s 2024 National Conference argued.
Sanjay Wadwha, deputy director of the SEC’s Enforcement Division, discussed the agency’s rationale for issuing widely disparate penalties for off-channel communications recordkeeping violations, as well as violations of its amended marketing rule.
Registered investment adviser Senvest Management agreed to pay $6.5 million as part of a settlement with the Securities and Exchange Commission addressing admitted off-channel communications violations and separate code of ethics failures.
The U.S. Supreme Court extended the statute of limitations for businesses attempting to challenge some federal regulations, allowing regulated entities a longer timeline to appeal a decision.
The Supreme Court of the United States overturned a long-held precedent in which courts deferred to federal agencies in interpreting complex or ambiguous regulations–a decision that could make thousands of federal regulations more vulnerable to legal challenges.
Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
