SEC Enforcement of Off-Channel Communications Continues

Sep 10, 2024 · In December 2021, the SEC’s Division of Enforcement brought its first off-channel communications case against a broker-dealer.[3] Since that time, the SEC has consistently …

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SEC.gov | Two Robinhood Broker-Dealers To Pay $45 Million In …

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Jan 13, 2025 · Off-Channel Communications: Robinhood had longstanding failures to maintain and preserve electronic communications in violation of the recordkeeping provisions of the …

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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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FAQs about SEC Enforcement of Off-Channel Communications Continues Coupon?

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 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. ...

Are broker-dealers involved in SEC off-Channel Communications?

Most of the SEC’s off-channel communications actions to date have involved broker-dealers. ...

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. ...

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. ...

Who has been charged by the SEC for off-Channel Communications?

The firms charged included broker-dealers, investment advisers, and dually registered broker-dealers and investment advisers as well as one family of firms that self-reported conduct to the SEC. To date, the SEC has charged over 40 registrants and leveled over $1.6 billion in penalties as part of its off-channel communications matters. ...