SEC’s Focus on Off-Channel Communications Continues

Oct 31, 2023 · On September 29, the US Securities and Exchange Commission ("SEC") brought its latest wave of enforcement actions related to "off-channel communications," charging 10 additional firms with failing to maintain employee communications on personal devices that …

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Twelve Firms To Pay More Than $63 Million Combined To Settle …

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Jan 13, 2025 · Each of the SEC’s investigations uncovered the use of unapproved communication methods, known as off-channel communications, at these firms. As described in the SEC’s …

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Regulatory Scrutiny Of “Off-Channel” Communications Continues: …

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Aug 11, 2023 · In September 2022, the SEC settled similar off-channel communications charges with 15 broker-dealers and one affiliated investment adviser for a combined $1.1 billion in civil …

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SEC's Growing Focus On Off-channel Communications Troubling To …

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Oct 8, 2024 · Since December 2021, the SEC has settled charges with more than 100 firms and resulting in more than $2 billion in penalties for failures to maintain and preserve electronic …

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SEC Penalties For Off-Channel Communications: Still Blowing In …

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Sep 30, 2024 · Since 2021, the SEC has charged approximately 60 firms with off-channel record-keeping violations and imposed approximately $2.7 billion in fines and penalties against such …

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FAQs about SEC’s Focus on Off-Channel Communications Continues Coupon?

Did the SEC settle off-Channel Communications?

On September 23, 2024, the SEC announced its first settled off-channel communications action that resulted in no civil penalty or imposition of an ICC, as well as the first (and only) no-admit, no-deny settlement in these matters. The SEC charged Atom Investors LP with violations of, among other things, Advisers Act Rule 204-2. ...

What does the SEC say about off-channel communication?

The SEC emphasizes that individuals in supervisory roles, such as senior management, partners, or managing directors, exchanged off-channel communications with multiple colleagues, including junior employees under their supervision. ...

Will the SEC charge investment advisers for off-Channel Communications?

In certain of these September 29 cases — and some before then — the SEC has also charged investment advisers (including dually registered broker-dealers and investment advisers) for off-channel communications where the record-keeping standard is narrower and more nuanced. ...

How many off-Channel Communications were sent during the SEC investigation?

During the course of its investigation, the SEC found that thousands of off-channel communications were sent during the applicable period. More specifically, “ [the Adviser] did not access employees’ personal devices to determine whether they were complying with the firm’s communication policies. ...

What happened to 'off-Channel Communications'?

On August 14, the U.S. Securities and Exchange Commission (“SEC”) announced yet another wave of enforcement actions related to widespread “off-channel communications,” charging an additional 26 firms with failing to maintain employee communications on personal devices which related to the firms’ business. ...

What are the SEC's 'off-Channel Communications' orders?

Here are five key takeaways from the September 29, 2023, orders. The orders give only scant guidance as to the types of communications the SEC views as falling within Rule 204-2 (a) (7) of the Advisers Act. Most of the SEC’s off-channel communications actions to date have involved broker-dealers. ...