News & Analysis as of

WhatsApp Securities and Exchange Commission (SEC)

Akin Gump Strauss Hauer & Feld LLP

“Under the Wire” E-Comms Settlements: More Confusion Than Closure

On January 13, 2025, the U.S. Securities and Exchange Commission announced settled enforcement actions with five registered investment advisers for failing to maintain and preserve internal electronic communications. These...more

Vinson & Elkins LLP

Ephemeral Sweeps: President-Elect Trump’s SEC Expected to Abandon Probes into Use of WhatsApp and “Off-Channel” Messaging...

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After a three-year crackdown on the use of “ephemeral” electronic messaging platforms by the United States Securities and Exchange Commission (“SEC”) under Chair Gary Gensler, early indications are that the incoming Trump...more

BakerHostetler

Deeper Dive: Preserving Ephemeral Messaging - Capture Data Before Its Ghosts Haunt Your Compliance

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Organizations whose mantra is “We just never delete anything” (i.e., organizations simply retaining all information indefinitely) are now facing headwinds, especially when the information contains personal information. As our...more

White & Case LLP

SEC Continues Focus on Off-Channel Communications

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On August 14, the U.S. Securities and Exchange Commission (“SEC”) announced yet another wave of enforcement actions related to widespread “off-channel communications,” charging an additional 26 firms with failing to maintain...more

Sullivan & Worcester

SEC and CFTC Continue Their Lucrative Pursuits of Penalizing Unapproved Communication Methods

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SEC's and CFTC's Enforcement Actions Against Multiple Firms - In its continued pursuit of rooting out and penalizing broker-dealers and investment advisers for their failure to prevent unapproved communication methods, the...more

Pagefreezer

Why the DOJ Says Messaging Apps & Collaboration Platforms Are a Major Compliance Problem

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The Department of Justice (DOJ) has updated their Evaluation of Corporate Compliance Programs policy with special attention paid to messaging platforms when detecting and investigating potential misconduct and law violations....more

TransPerfect Legal

Chatting without Penalty: The Evolving Role of Instant Messaging in Legal Matters

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I. The Phenomenon of Instant Messaging- Evolution and Proliferation- From basic platforms like IRC and AIM to globally dominant apps such as WhatsApp and Telegram, instant messaging (IM) has witnessed a radical...more

Bracewell LLP

FINRA Facts and Trends: October 2023

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Welcome to the latest issue of Bracewell’s FINRA Facts and Trends, a monthly newsletter devoted to condensing and digesting recent FINRA developments in the areas of enforcement, regulation and dispute resolution. This month,...more

Alston & Bird

The Latest in the SEC’s Off-Network Communications Enforcement Sweep

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On September 29, 2023, the U.S. Securities and Exchange Commission (SEC) announced enforcement actions against five broker-dealers, three dually registered broker-dealers and investment advisers, and two affiliated investment...more

Carlton Fields

Regulators Hit Jackpot: Off-Channel Communications

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Several years before announcing the first “off-channel” communications enforcement action, the SEC and FINRA cautioned broker-dealers and investment advisers about problematic record-keeping practices involving the use of...more

Thomas Fox - Compliance Evangelist

Messaging App Compliance in Regulated Industries: Lessons from Recent Enforcement Actions

In recent years, regulated industries, particularly broker dealer firms like Wells Fargo and Morgan Stanley, have faced increased scrutiny from regulatory bodies due to their lack of compliance in policing messaging apps. The...more

Blake, Cassels & Graydon LLP

Quoi de neuf à propos de WhatsApp et des exigences en matière de surveillance?

Le nouvel organisme d’autoréglementation (le « nouvel OAR », lequel s’appellera : Organisme canadien de réglementation des investissements ou « OCRI ») exige des courtiers membres canadiens qu’ils tiennent des dossiers...more

Blake, Cassels & Graydon LLP

What’s Up With WhatsApp and Supervision Obligations?

The New Self Regulatory Organization (SRO, soon to be called the Canadian Investment Regulatory Organization or CIRO) requires Canadian Dealer Members to keep complete and accurate records of client communications for at...more

Morrison & Foerster LLP

SEC Targeting RIAs for Use of “Off-Channel” Communications

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Recent reports indicate that the Securities and Exchange Commission (SEC) is increasing its attention on registered investment advisers (RIAs) and their oversight and recordkeeping responsibilities related to employees’ use...more

Goodwin

Delaware Court of Chancery Holds Buzzfeed Not Bound by Pre-SPAC Merger Employment Agreements

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On October 28, 2022, Vice Chancellor Morgan T. Zurn of the Delaware Court of Chancery ruled that the declaratory action brought by Buzzfeed Inc. against 91 current and former employees is not bound by arbitration provisions...more

Wilson Sonsini Goodrich & Rosati

Banks Fined $2 Billion for Employees’ “Off-Channel” Communications—Is Your Industry at Risk?

On September 27, 2022, the U.S. Securities and Exchange Commission (SEC) announced settlements against 11 major financial institutions, resolving an industry sweep into employees improperly using personal messaging...more

Katten Muchin Rosenman LLP

Financial Markets and Funds Quick Take | Issue 8

SEC Advertising Rules – Client Resource Center - November 4 was the compliance date for the new rule governing advertising and solicitation activities by investment advisers. The new rule substantially revises decades old...more

Amundsen Davis LLC

Regretful Texts? Texts Cost Broker-Dealers $1.1 Billion

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Broker-dealers are required to maintain records of any communications received relating to the firm’s business. The SEC recently charged 16 broker-dealers with recordkeeping violations for off-channel communications that were...more

Hanzo

Compliance Update: Unauthorized Messaging Apps Lead to 1.8B in Fines

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According to a recent press release from the Securities Exchange Commission (SEC), sixteen Wall Street firms were fined for widespread and longstanding failures by the organizations and their employees to maintain and...more

Winstead PC

Financial Regulators Focus on Preservation of Ephemeral Messaging

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Recent Enforcement Action - The requirement that financial firms preserve books and records is nothing new. But how do such firms keep track of employees’ communications on applications like Signal or WhatsApp? Those...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

Goodwin

SEC and CFTC Send Powerful Message With $2 Billion in Fines Related to Social Media and Text Recordkeeping Lapses

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​​​​​​​The SEC and CFTC recently charged 11 large financial institutions and their affiliates for failing to collect, monitor, and preserve communications over WhatsApp and other messaging services. These settlements follow a...more

Carlton Fields

What’s Up With WhatsApp and Text Messaging? SEC and FINRA Weigh In

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The SEC requires broker-dealers to maintain originals of all communications received and copies of all communications sent by the broker-dealer relating to its business for three years. The SEC has explained that Rule 17a-4...more

Alston & Bird

SEC and CFTC Crackdown on Use of Personal Messaging Platforms Raises Compliance Concerns – and Opportunities

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Using personal devices and messaging platforms may be convenient (and ubiquitous), but it may run afoul of federal records retention rules. Our Investment Management, Trading & Markets and White Collar, Government & Internal...more

Eversheds Sutherland (US) LLP

Enforcement appears as messages disappear: The perils of personal and ephemeral messaging

On December 17, 2021, a financial institution agreed to pay $200 million in fines to the Securities and Exchange Commission and Commodities Futures Trading Commission for allowing employees to discuss business on their...more

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