The U.S. Securities and Exchange Commission (SEC) has imposed substantial fines on major companies, including financial giants, for using unapproved communication methods. These companies will collectively pay a total of $63.1 million due to violations related to record-keeping regulations.
Details of the Fines
The SEC identified that these firms breached federal securities laws concerning record-keeping requirements. Employees, executives, and auditors from the affected companies communicated through unofficial channels, which led the regulator to conclude that the firms did not adequately monitor their personnel’s use of unauthorized messaging platforms.
Among the companies penalized are significant financial service providers such as Charles Schwab, Santander, and Blackstone. Blackstone Alternative Credit Advisors LP, Blackstone Management Partners L.L.C., and Blackstone Real Estate Advisors L.P. agreed to pay $12 million in fines collectively.
“When firms fail to meet these obligations, the consequences extend beyond inadequate documentation; such failures affect market transparency and integrity,” -Sanjay Wadhwa, Deputy Director of the SEC’s Enforcement Division.
In addition to monetary penalties, the SEC cautioned financial institutions to halt record-keeping violations and prevent further infractions. Firms…
