SEC and CFTC Penalize Broker-Dealers $1.8 Billion for Electronic Communications Recordkeeping Violations

In 2021, the SEC and CFTC imposed a massive $200‑million penalty on JPMorgan for failing to maintain records of electronic communications that its employees conducted on personal devices. That resolution appears to have been the tip of the iceberg; the agencies have now resolved enforcement proceedings against more than a dozen registrants involving substantially similar violations. As in the JPMorgan resolution, the respondents have admitted to the facts alleged by the SEC and CFTC and to violating SEC and CFTC recordkeeping and supervision requirements. This article analyzes the alleged violations and the terms of the settlements. See “JPMorgan Fined $200 Million for Failure to Maintain Electronic Communication Records” (Feb. 17, 2022).

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