The Securities and Exchange Commission is finalizing settlements with about two dozen Wall Street firms to resolve probes into lapses in record keeping, Reuters reported.
The settlements are with investment advisers and broker-dealers, according to the report, which cited people familiar with the matter. It marks the latest enforcement action in the regulator’s two-year crackdown on Wall Street’s use of WhatsApp and other messaging apps.
Fines tied to unauthorized communications on Wall Street have already topped $2.5 billion. A slew of firms, including some of the biggest names in asset management, private equity and hedge funds, have been quizzed about the use of unofficial channels.
As part of the settlements, Reuters reported that firms will admit wrongdoing and utilize independent contractors as part of the commitment to fix the lapses. Roughly two dozen firms are involved, the report said, with some paying as much $50 million.
Details on some deals are expected by Sept. 30, ahead of the SEC’s fiscal year-end, according to the report. An SEC spokesperson declined to comment to Reuters.
A wide swath of firms have disclosed that regulators are looking at their messaging practices, including private equity titans Apollo Global Management Inc. and Carlyle Group Inc. Other notable companies that have already been fined hundreds of millions of dollars include Wells Fargo & Co., BNP Paribas, Bank of America Corp., Citigroup Inc. and Goldman Sachs Group Inc.
| 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 |
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