SEC Charges 12 Firms with Recordkeeping Failures, Issues Combined Fine of $88 Million

By Denny Jacob

The Securities and Exchange Commission said it charged 12 firms for widespread and longstanding failures for failing to maintain and preserve electronic communications that violated recordkeeping provisions as required by federal securities laws.

The regulator said the firms admitted to the facts laid out in their respective orders and agreed to pay combined civil penalties of about $88.3 million.

The SEC said its investigations into all of the firms -- which consisted of broker-dealers, investment advisers and one dually registered broker-dealer and investment adviser -- except for one uncovered longstanding use of unapproved communication methods, known as off-channel communications.

Stifel, Nicolaus & Co. will pay a $35 million penalty. Invesco Distributors, together with Invesco Advisers, also will pay $35 million. CIBC World Markets, together with CIBC Private Wealth Advisors, agreed to pay a $12 million penalty.

Other firms charged by the SEC include Glazer Capital, Intesa Sanpaolo IMI Securities, Canaccord Genuity, Regions Securities, Alpaca Securities and Focused Wealth Management, with penalties ranging from $325,000 to $2 million.

Qatalyst Partners, which also was charged, will not pay a penalty because it self-reported its recordkeeping violations, cooperated with the investigation and demonstrated efforts at compliances with the recordkeeping requirements, according to the SEC.

The SEC said each of the firms was ordered to cease and desist from future violations of the relevant recordkeeping provisions and was censured. Ten of the firms also agreed to retain compliance consultants to conduct reviews of policies and procedures relating to preserving electronic communications, among other things.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

September 24, 2024 09:55 ET (13:55 GMT)

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