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SEC Finalizing 19 New Settlements in Wall Street WhatsApp Probe: Reuters

By Adam Haigh

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The Securities and Exchange Commission is finalizing settlements with about two dozen Wall Street firms to resolve probes into lapses in record keeping, Reuters reported.

The settlements are with investment advisers and broker dealers, according to the report, which cited people familiar with the matter. It marks the latest enforcement action in the regulator’s two-year crackdown on Wall Street’s use of WhatsApp and other messaging apps.

Fines tied to unauthorized communications on Wall Street have already topped $2.5 billion.

A slew of firms, including some of the biggest names in asset management, private equity and hedge funds, have been quizzed about the use of unofficial channels.

As part of the settlements, Reuters reported that firms will admit wrongdoing and utilize independent contractors as part of the commitment to fix the lapses. Roughly two dozen firms are involved, the report said, with some paying as much $50 million.

Details on some deals are expected by Sept. 30, ahead of the SEC’s fiscal year-end, according to the report. An SEC spokesperson declined to comment to Reuters.

A wide swath of firms have disclosed that regulators are looking at their messaging practices, including private equity titans Apollo Global Management Inc. and Carlyle Group Inc.

Other notable companies that have already been fined hundreds of millions of dollars include Wells Fargo & Co., BNP Paribas SA, Bank of America Corp., Citigroup Inc. and Goldman Sachs Group Inc.

Who’s on Notice 
Company Source Agency Focus
Apollo Global Management Inc. 10-Q SEC Electronic messaging channels
BlackRock Inc. 10-Q SEC Record retention requirements
Blackstone Inc. 10-Q SEC Retention of electronic business communications
Carlyle Group Inc. 10-Q SEC WhatsApp, WeChat and similar applications
Citadel BN SEC Unapproved channels
Fifth Third Bancorp 10-Q SEC, CFTC Settlement talks underway
Interactive Brokers Group Inc. 10-Q SEC, CFTC Records preservation requirements
Invesco Ltd. 10-Q SEC Investment advisers
Jones Financial Cos. 10-Q SEC Unapproved devices, platforms
KeyCorp 10-Q SEC, CFTC Broker-dealer, investment advisers
KKR & Co. 10-Q SEC Business-related electronic communications
LPL Financial Holdings Inc. 10-Q SEC Personal devices and messaging platforms
Oppenheimer Holdings Inc. 10-Q SEC, CFTC Broker-dealer, investment advisers
Point72 Asset Management BN SEC Unapproved channels
Robinhood Markets Inc. 10-Q SEC, Finra Brokerage communications
TPG Inc. 10-Q SEC Retention of electronic communications
Truist Financial Corp. 10-Q SEC, CFTC Broker-dealer, investment adviser, swap dealer
US Bancorp 10-Q SEC Broker-dealer, investment adviser
Voya Financial Inc. 10-Q SEC Unapproved channels

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