News & Analysis as of

Recordkeeping Requirements Broker-Dealer Instant Messaging Apps

Eversheds Sutherland (US) LLP

No good deed goes unpunished: FINRA punishes firm for failing to supervise use of approved off-channel communications

FINRA recently sanctioned, through a Letter of Acceptance, Waiver and Consent (AWC), a broker-dealer for off-channel communications—not because financial professionals texted or used instant messaging when they weren’t...more

Holland & Knight LLP

A Long Winter's Nap? SEC Off-Channel Communications Enforcement May Draw to a Close

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The SEC's wave of enforcement actions concerning "off-channel" communications did not abate in 2024. In total, the SEC announced more than 70 firms agreed to pay more than a half-billion dollars combined to settle charges for...more

Lowenstein Sandler LLP

Another Wave of SEC Settlements Underscore the Continued Priority of Record Retention Communication Compliance

On August 14, 2024, the U.S. Securities and Exchange Commission (SEC) announced another series of settlements regarding “off-channel communications.”1 As part of its Off-Channel Communications Initiative,2 the SEC settled...more

BCLP

SEC Enforcement Sweep Regarding Off-Channel Communications

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On February 9, 2024 the U.S. Securities and Exchange Commission (the “SEC”) announced charges against 16 registered investment advisers and broker-dealers for pervasive recordkeeping failures related to off-channel...more

Troutman Pepper Locke

How to Avoid a Similar Fate? SEC Charges Firms With Record-Keeping Violations for Off-Channel Communications

Troutman Pepper Locke on

On February 9, the Securities and Exchange Commission (SEC) announced settlements with 16 firms relating to record-keeping violations stemming from off-channel communications totaling $81 million. The 16 firms were five...more

Holland & Knight LLP

Do Not Delete: SEC and DOJ Send Serious Messages on Preserving Ephemeral Communications

Holland & Knight LLP on

Ages ago, hieroglyphics were painstakingly etched into stone. They communicated various types of messages, from fables to business transactions, and lasted thousands of years. Today, we still communicate the same type of...more

Nelson Mullins Riley & Scarborough LLP

Every Buck You Lend, Every Text You Send, the SEC’ll Be Watching You

Take one look at your phone and count how many different message apps you have.  WhatsApp, Facebook Messenger, Snapchat, Telegram, Signal, iMessage.  Those are just some of the most popular messaging applications available...more

Paul Hastings LLP

Ephemeral Messaging at the Office: Avoiding Pitfalls and Establishing Best Practices

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Users of ephemeral messaging applications may intend that their messages be—as the word “ephemeral” suggests—short lived, but the real-world consequences and legal ramifications from improper use of such apps can be anything...more

BakerHostetler

Businesses Must Contemplate Employees' Use of Messaging Apps on Personal Devices

BakerHostetler on

An investment management company was recently hit with $200 million in fines for failing to track employees’ use of personal messaging apps, which resulted in the loss of communications that were subject to regulatory...more

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