The penalties mark the latest wave of a sweeping multi-year enforcement initiative targeting Wall Street’s use of so-called “off channel” work communications such as text and WhatsApp messages in breach of rules which require firms to retain certain work-related communications.
Another group of broker-dealer and investment advisers have agreed to pay over $470 million to U.S. regulators to settle civil charges they violated recordkeeping rules, the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission said in statements on Wednesday.
Toronto-Dominion Bank’s TD Securities, BNY and Truist were among the Wall Street firms that settled charges they violated regulators’ rules requiring broker-dealers and investment advisers to maintain records of work-related communications, the SEC and CFTC said.
Representatives for most firms did not respond immediately to requests for comment.
A spokesperson for BNY said the firm takes its regulatory responsibilities seriously, while TD said it was investing in technology and improving its electronic communications policies. RBC said it would continue to enhance its compliance protocols.
The penalties mark the latest wave of a sweeping multi-year enforcement initiative targeting Wall Street’s use of so-called “off channel” work communications such as text and WhatsApp messages in breach of rules which require firms to retain certain work-related communications.