A bunch of big-name Wall Street firms are facing a hefty fine for messing up their record-keeping. The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are slapping these firms with a collective $470 million fine.
What Went Wrong?
The firms admitted to using “off-channel” communication, like private emails and texts, to discuss business instead of using official company systems. This means regulators couldn’t see all the important information when investigating potential problems.
Who’s Paying Up?
Some of the biggest names involved include:
- Bank of New York Mellon: $40 million to the SEC
- Truist: $5 million to the SEC and $3 million to the CFTC
- Ameriprise Financial Services, Edward D. Jones & Co, LPL Financial, and Raymond James & Associates: $50 million each to the SEC
- Toronto Dominion (TD) Bank: $75 million to the CFTC
- Cowen and Company: $3 million to the CFTC
Self-Reporting Matters
The SEC said some firms got a lighter slap on the wrist because they came forward themselves before the regulators started digging. This shows that being upfront can help avoid bigger penalties.
Regulators are serious about making sure firms follow the rules, and they’re sending a clear message that record-keeping is essential for protecting investors and keeping the markets fair. /p>
