The Security and Exchange Commission announced charges against 12 firms for widespread and longstanding failures to preserve electronic communications.
The firms, including Stifel, Nicolaus & Company, Invesco Distributors, Inc and CIBC World Markets Corp agreed to pay $88 million in combined civil penalties.
“Today’s enforcement actions reflect the range of remedies that parties may face for violating the recordkeeping requirements of the federal securities laws. Widespread and longstanding failures, including where those failures potentially hinder the Commission’s investor protection function by compromising a firm’s response to SEC subpoenas, may result in robust civil penalties,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
The SEC’s investigation uncovered pervasive use of unapproved communications methods at these firms. The failures included personnel throughout the organizational chart including supervisors and senior managers and hindered the ability of the SEC to investigate these communications.
By Staff
