MyComplianceOffice Blog

U.S. Securities and Exchange Commission (SEC) enforcement for failure to maintain and preserve adequate records of electronic communications and for failure to adequately supervise the use of off-channel communications is at the top of compliance professionals' minds right now. The size and scope of the firms involved and the staggering $2.5 billion plus in penalties assessed have made the actions a hot topic in the news and across the financial services industry. 

In recent months the SEC and CFTC have charged multiple Wall Street firms with widespread recordkeeping failures, handing down staggering penalties in excess of 1.5 billion dollars. Firms—including smaller ones—should only expect that the aggressive enforcement will continue.  And the SEC's Division of Examinations 2024 Priorities only reinforce the agency's continued focus on the importance of record keeping and demonstrable compliance. 

Are your books and records ready to stand up to regulatory scrutiny?

2023 was another active year for U.S. Securities and Exchange Commission (SEC) enforcement, encompassing a wide range of violations against individuals and firms of all sizes.  

Understanding 2023 enforcement actions along with the agency’s 2024 enforcement priorities will help firms better assess and anticipate regulatory expectations—and set the stage for better compliance. 

It’s been an eventful year in Financial Services risk and compliance across the globe. From record enforcement levels to market disruptions to evolving regulations around emerging risks like digital assets and crypto, developments have been coming at compliance professionals at a fast and furious pace.

To keep up with the latest regulatory developments and understand the practical impact on compliance, check out MCO's library of 2022 on-demand webinars for expert guidance viewed at your convenience.

U.S. Securities and Exchange Commission Chair Gary Gensler said in a speech to the Practicing Law Institute that during the fiscal year that just ended on September 30, the agency filed over 700 actions and obtained judgments and orders totaling $6.4 billion, including $4 billion in civil penalties.

 The actions, outlined in a recent press release, covered a wide range of misconduct including charges around insider trading, disclosure failures and omissions, market manipulation and fraud, misleading investors, executive accountability, failure to maintain books and records, failure to register crypto as a security and insufficient policies and procedures.