Skip to main content

Theta Lake Recognized as a Visionary in 2025 Gartner® Magic Quadrant™ for DCGA Solutions. Download the report

Articles

Bloomberg Law: Beware of Messaging App Crackdown on Wall Street

By October 5, 2022No Comments
WhatsAppLogo

 

Marc Gilman, general counsel of Theta Lake, outlines takeaways from SEC and CFTC orders imposing $1.8 billion in fines against over two dozen Wall Street firms for record-keeping failures involving electronic communications. He says these orders can serve as a roadmap for improving compliance controls.

On Sept. 27 the Securities and Exchange Commission and the Commodity Futures Trading Commission collectively announced a combined $1.8 billion in fines against more than two dozen Wall Street firms for failing to maintain and preserve electronic communications.

The charges stem from record-keeping failures and use of unapproved communication methods, including WhatsApp, to conduct business.

From a practical perspective, the actions provide a clear indication of the record-keeping and supervisory expectations of the SEC and CFTC and offer insight into how firms can improve compliance efforts.

These enforcement actions against broker-dealers, swap dealers, and futures commission merchants, combined with $200 million in fines issued in December 2021, brings the total for record-keeping lapses to more than $2 billion.

Given that prior fines for record-keeping failures were in the seven-figure range, these penalties coupled with mandatory remedial actions, including the engagement of third-party compliance consultants, reflect a new regulatory reality.

Read the full article by Marc Gilman at Bloomberg Law.

Bloomberg Law logo

Marc Gilman

Author Marc Gilman

Marc Gilman is the General Counsel and VP of Compliance at Theta Lake as well as an adjunct professor at Fordham University School of Law. Linkedin

More posts by Marc Gilman