Each month, we publish the Securities Operations Regulatory Update (SORU)
as part of our Regulatory Compliance Service.
The SORU is the premier monthly guide to pending regulatory changes relevant to securities operations. Within it you will find updates on key regulatory issues important to securities operations professionals, helpful synopses to better understand reasoning and implications behind new legislation and regulatory changes, and access to critical information regarding impacts to your compliance programs and regulatory requirements.
In the first of what may be several significant enforcement actions, the SEC fined a firm $200 million for recordkeeping violations in connection with employees’ use of personal devices when communicating about securities business matters. The employees communicated on their personal devices using text messages, WhatsApp, and personal email accounts. The SEC is currently undertaking investigations of record preservation practices at other financial firms and has directed firms that believe their practices do not comply with federal securities laws to contact the SEC.
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