Washington (Business Emerge), August 16: In a significant regulatory action, several major Wall Street firms have agreed to pay over $470 million to U.S. authorities to resolve allegations of breaching recordkeeping regulations. The settlement addresses civil charges concerning the firms’ failure to maintain proper documentation of work-related communications.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) revealed the settlement on Wednesday, highlighting the involvement of prominent financial institutions such as Toronto-Dominion Bank’s TD Securities, BNY, and Truist. These firms faced scrutiny for not adhering to rules that mandate the retention of all work-related communication records, including text messages and WhatsApp exchanges.
Responses from the involved firms varied. A BNY spokesperson affirmed the firm’s commitment to its regulatory duties. TD indicated it is upgrading its technology and refining its electronic communication policies. RBC pledged to persist in enhancing its compliance measures.
This settlement is part of an ongoing enforcement campaign focusing on Wall Street’s use of “off-channel” communications that do not comply with regulatory recordkeeping requirements. The initiative underscores the increasing regulatory focus on ensuring that all business communications are properly documented and retained.