U.S. regulators are poised to announce a settlement with firms across Wall Street for failing to monitor employees using unauthorized messaging apps.
The Securities and Exchange Commission and the Commodity Futures Trading Commission are preparing to disclose the results of the investigation as soon as Wednesday that could see them extracting total fines of around $2 billion, according to a person with knowledge of the matter as well a review of disclosures made by the world’s largest banks.
A representative for the SEC declined to comment and a representative for the CFTC didn’t immediately respond to requests for comment.
The action represents a rare escalation from regulators looking into such an issue, with fines tending to be significantly lower in the past. The sweeping civil probes rank among the largest-ever penalties levied against U.S. banks for record-keeping lapses, dwarfing a $15 million penalty imposed on Morgan Stanley in 2006 over its failure to preserve emails.
Morgan Stanley said in July it was nearing a settlement that would see it pay a $200 million fine — a figure that was likely to be mirrored by its biggest rivals. Other major banks also disclosed setting aside similar figures at the end of their second-quarter earnings without specifying the reason. JPMorgan Chase & Co. has been the only bank until now to reach a settlement with the regulators, and was the first to report the fines in December.
Finance firms are required to scrupulously monitor communications involving their business to head off improper conduct. That system, already challenged by the proliferation of mobile-messaging apps, was strained further as firms sent workers home shortly after the start of the Covid-19 outbreak.
Some in the industry say that more UBS financial advisors this year will be heading for the exits.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.
MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
