A new group of Wall Street firms has agreed to pay more than $81 million in civil penalties to settle U.S. Securities and Exchange Commission charges of record-keeping failures, the regulator said on Friday, Reuters reported. The settlements with broker-dealers and investment advisers, including Oppenheimer & Co. Inc. and U.S. Bancorp, are the latest in a multi-year initiative by the SEC to investigate how registered financial firms handle employees' work-related communications on personal devices and apps, such as WhatsApp. "The SEC’s investigations uncovered pervasive and longstanding uses of unapproved communication methods, known as off-channel communications," the agency said in a statement. The companies admitted that employees "communicated through personal text messages about the business of their employers" and "sent and received off-channel communications related to recommendations made or proposed to be made and advice given or proposed to be given," the SEC said. Since 2021, the SEC has hit dozens of firms including big banks such as JPMorgan Chase & Co and Wells Fargo & Co with fines of $1.7 billion over such compliance failures. Broker dealers and investment advisers, which are registered with the SEC, are subject to record-keeping requirements. The increasing use of off-channel communications has complicated companies' efforts to meet those requirements.
