Last week, the US Securities and Exchange Commission (SEC) announced civil penalties of $63 million against 12 firms, including investment advisers and broker-dealers, for employee use of unauthorized messaging apps.
"Each of the SEC's investigations uncovered the use of unapproved communication methods, known as off-channel communications, at these firms," the SEC explained in a press release. “As described in the SEC's orders, the firms admitted that, during the relevant periods, their personnel sent and received off-channel communications that were records required to be maintained under the securities laws. The failures involved personnel at multiple levels of authority, including supervisors and senior managers.”
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