Books and Records

A failure to preserve 14,000 records led to a $30,000 FINRA fine

"We consider a firm’s efforts to comply with its recordkeeping obligations and to prevent off-channel communications, focusing, for example, on timely adoption of meaningful technological ...

The firm was further dinged for improperly permitting one of its FAs to engage in securities activities with and for persons in the U.S., when ...

Peirce and Uyeda question whether firms "have an achievable path to compliance" when it comes to off-channel communications

Prior to and after being approached by the Commission, Stifel enhanced its P&Ps, increased training on use of approved communications methods, and provided some personnel ...

The Commission requested documents in an unrelated investigation that revealed the use of off-channel and unpreserved communications. As a result, Glazer’s recordkeeping failures likely impacted ...

The firm gathered and produced emails and text messages, including those at senior levels, that were sent or received by text message on personal phones ...

The firms provided certain personnel with firm-issued devices that included technology that enabled the capture, retention, and archiving of communications (including text messages) sent and ...

After discovering the off-channel communications, the firm voluntarily conducted an internal review ... and took remedial actions by making changes to its compliance program, including ...

"The use of off-channel communications—text messages, smartphone chat applications like WhatsApp, and personal email outside firm-approved systems—is prevalent across the securities industry. We have an ...