U.S. SEC nearing settlement with Wall Street firms over WhatsApp probe -sources

Voya Financial

28/09/2023 01:43

NEW YORK, Sept 27 (Reuters) - The U.S. Securities and
Exchange Commission (SEC) is finalizing settlements with around
two dozen Wall Street firms to resolve investigations into
record-keeping lapses, said two people with knowledge of the
matter.
    The settlements with broker-dealers and investment advisers
would mark the latest enforcement action in the SEC's two-year
crackdown on Wall Street's use of WhatsApp and other unapproved
messaging apps which has so far netted regulators over $2
billion in fines. 
    Under the deals being finalized with the SEC, the firms
would pay fines, admit wrongdoing and commit to fixing the
lapses, including by hiring independent consultants to overhaul
their record-keeping programs, the two sources said. One said
some firms could pay as much as $50 million.
    The SEC is expected to announce some of the settlements in
one group ahead of its fiscal year-end on September 30, but the
negotiations are fluid, said a third source familiar with the
situation. 
    The sources, who spoke on the condition of anonymity because
SEC investigations are confidential, said roughly two dozen
firms are involved but Reuters could not immediately ascertain
their names. 

 (Reporting by Chris Prentice and Carolina Mandl
Editing by Michelle Price)
 ((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;))