SEC Remains Focused on Off‑Channel Communications

Maintaining appropriate business records is a fundamental compliance duty and a core component of the SEC’s examination and enforcement regime. In recent years, the SEC has zeroed in on how firms monitor and maintain records of so‑called “off‑channel” electronic communications, imposing $2 billion in penalties on firms that failed to do so. In a recent firm presentation, Seward & Kissel partners discussed the SEC’s recent enforcement actions, its pending sweep of investment advisers and what advisers can do to ensure they have appropriately addressed use of off‑channel communications. This article distills their insights. See “Messaging Apps Come Under Increasing Regulatory Scrutiny” (Jun. 7, 2023).

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