US SEC says 16 firms fined more than $81 mln for recordkeeping failures (updated)

Oppenheimer Holdings

09/02/2024 14:50

(Adds firms, details from SEC statement)
       WASHINGTON, Feb 9 (Reuters) - The U.S. Securities and
Exchange Commission on Friday said 16 firms will pay more than
$81 million to settle charges for widespread recordkeeping
failures. 
    The agency announced the civil penalties against five
broker-dealers, seven dual registered broker-dealers and
investment advisers, and four affiliated investment advisers. 
    The 16 firms admitted the facts, the SEC said in a
statement, and have begun improving compliance policies and
procedures.
    "The SEC’s investigations uncovered pervasive and
longstanding uses of unapproved communication methods, known as
off-channel communications, at all 16 firms," the SEC statement
said. 
    The firms admitted that employees "communicated through
personal text messages about the business of their employers"
and "sent and received off-channel communications related to
recommendations made or proposed to be made and advice given or
proposed to be given," the SEC said.
    The firms include Northwestern Mutual Investment Services
LLC, Guggehnheim Securities LLC, Oppenheimer & Co. Inc.,
Cambridge Investment Research Inc., Key Investment Services LLC,
Lincoln Financial Advisors Corporation, U.S. Bancorp Investments
Inc. and The Huntington Investment Company, the SEC said.

 (Reporting by Doina Chiacu; Editing by Susan Heavey and Barbara
Lewis)
 ((doina.chiacu@thomsonreuters.com; 202-898-8322;))