Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

SEC Uncovers

Posted on August 21st, 2023 at 3:51 PM
SEC Uncovers

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï 

Wall Street regulators recently imposed hundreds of millions of dollars in penalties on broker-dealers. The penalties resulted from their failure to detect executives and traders using unofficial communication platforms such as WhatsApp.

As reported by InvestmentNews, eleven firms agreed to pay $289 million to settle the matter with the Securities and Exchange Commission (SEC). However, ÍøÆØ³Ô¹Ïdbush Securities Inc. had its wealth management operations cited directly in the settlement, with the SEC claiming “pervasive off-channel communications at all seniority levels of ÍøÆØ³Ô¹Ïdbush's broker-dealer and investment advisor.”

According to the SEC, from at least January 2019, ÍøÆØ³Ô¹Ïdbush broker-dealer personnel sent and received off-channel messages that concerned the broker-dealer's business. During this period, ÍøÆØ³Ô¹Ïdbush investment advisor personnel sent and received off-channel messages related to, among other things, providing and recommending investment advice to clients. Additionally, from November 2021 to September 2022, according to the SEC, an executive vice president in ÍøÆØ³Ô¹Ïdbush's wealth management division exchanged numerous off-channel business-related messages with at least nine ÍøÆØ³Ô¹Ïdbush colleagues, personnel at other financial services firms, and market participants. ÍøÆØ³Ô¹Ïdbush agreed to pay a penalty of $10 million.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.