SEC and CFTC Continue to Penalize Firms for Electronic Communications Recordkeeping Violations

Since 2021, the SEC and CFTC have imposed approximately $2 billion in aggregate penalties on more than a dozen registered firms for failure to preserve records of business-related communications, particularly those made on unapproved devices or apps (off-channel communications). The agencies continue to target such violations, recently resolving four parallel enforcement proceedings against the U.S. broker-dealer, swap dealer and futures commission merchant arms of HSBC and The Bank of Nova Scotia based on the firms’ failures to preserve records of electronic communications and associated supervisory failures. This article parses the four settlement orders. See “Compliance Challenges in Records Management” (Aug. 16, 2023). 

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