Fines tied to unauthorized communications on Wall Street have topped $2.5 billion, and that’s probably not the last of it.
Filings and media reports show that regulators have quizzed more than a dozen other firms about the use of unofficial channels like WhatsApp, personal texts and email to conduct business.
The list includes some of the biggest names in asset management, private equity and hedge funds, as well as smaller banks, beyond the Big 6 that have already reached settlements.
| Who’s on Notice | ||||
|---|---|---|---|---|
| Company | Source | Agency | Focus | |
| Apollo Global Management Inc. | 10-Q | SEC | Electronic messaging channels | |
| BlackRock Inc. | 10-Q | SEC | Record retention requirements | |
| Blackstone Inc. | 10-Q | SEC | Retention of electronic business communications | |
| Carlyle Group Inc. | 10-Q | SEC | WhatsApp, WeChat and similar applications | |
| Citadel | BN | SEC | Unapproved channels | |
| Fifth Third Bancorp | 10-Q | SEC, CFTC | Settlement talks underway | |
| Interactive Brokers Group Inc. | 10-Q | SEC, CFTC | Records preservation requirements | |
| Invesco Ltd. | 10-Q | SEC | Investment advisers | |
| Jones Financial Cos. | 10-Q | SEC | Unapproved devices, platforms | |
| KeyCorp | 10-Q | SEC, CFTC | Broker-dealer, investment advisers | |
| KKR & Co. | 10-Q | SEC | Business-related electronic communications | |
| LPL Financial Holdings Inc. | 10-Q | SEC | Personal devices and messaging platforms | |
| Oppenheimer Holdings Inc. | 10-Q | SEC, CFTC | Broker-dealer, investment advisers | |
| Point72 Asset Management | BN | SEC | Unapproved channels | |
| Robinhood Markets Inc. | 10-Q | SEC, Finra | Brokerage communications | |
| TPG Inc. | 10-Q | SEC | Retention of electronic communications | |
| Truist Financial Corp. | 10-Q | SEC, CFTC | Broker-dealer, investment adviser, swap dealer | |
| US Bancorp | 10-Q | SEC | Broker-dealer, investment adviser | |
| Voya Financial Inc. | 10-Q | SEC | Unapproved channels |
An inquiry from regulators as they gather facts doesn’t necessarily mean that an enforcement action will result, or even that the recipient is a target for investigators. As some of the filings point out, it’s a wide-ranging “sweep” of the industry, and nearly all of the firms said they are cooperating.
Brokers and investment advisers are required to monitor and save communications involving their business to head off misconduct. When they don’t, regulators say it’s harder to investigate any wrongdoing. Their work is made even more difficult when bankers use messaging tools that delete communications automatically.
The Securities and Exchange Commission said its probe so far has found that “off-channel” communications were pervasive at some Wall Street firms, and it wasn’t just a few low-level rogues. At some companies. the SEC found that senior managers were involved, including heads of groups, managing directors and senior supervisors responsible for overseeing the conduct of junior employees.
Chinese stocks have been flying for the past month. Should US wealth managers go along for the ride?
The investment giant said Social Security numbers, driver's licenses, and other sensitive information was compromised by a third party using newly established accounts.
The employee-owned hybrid firm's latest hire in Fairfax reportedly managed $285M at his previous firm.
The hurricane is the latest severe-weather event in a retirement destination, underscoring the concerns about climate change that clients bring up, financial planners say.
The tech-driven alts platform will provide support to advisors seeking customized portfolio access for their high-net-worth clients.
Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.
Morningstar’s Joe Agostinelli highlights strategies for advisors to deepen client engagement and drive success
