The Securities and Exchange Commission (SEC) has charged 11 firms, including investment advisers, and broker-dealers, for failing to maintain and preserve electronic communications, violating federal securities recordkeeping provisions. These firms, including Stifel, Nicolaus and Company, Invesco, and CIBC World Markets, admitted to the violations and agreed to pay combined civil penalties totaling $88.225 million. These penalties stem from the widespread use of unapproved communication methods that were not retained as required under securities laws. The violations involved personnel at multiple levels, with several firms failing to supervise their staff adequately.
Among the firms, Qatalyst Partners avoided financial penalties due to its cooperation with the SEC, self-reporting the violations and implementing substantial compliance improvements. Other firms like Canaccord and Regions also received reduced penalties for their cooperation. Each firm was ordered to cease future violations, with most required to retain compliance consultants to review and enhance their policies on electronic communications retention. These enforcement actions reflect the SEC’s ongoing focus on ensuring compliance with recordkeeping laws, underscoring the importance of maintaining communication records to support investigations and protect investors.
