SEC Chairman Gary Gensler Imposes $393 million in Fines Against Firms for Failing to Track the Personal Phones of its Employees
The Surveillance and Exchange Commission
The agency imposes $393 million in fines against firms for failing to track the personal phones of its employees.
By: Wall Street Journal Editorial Board, August 25, 2024:
Does Gary Gensler believe there’s a limit to his power? It doesn’t appear so after the Securities and Exchange Commission this month dunned 26 financial firms for failing to track employee “off-channel” communications. The SEC Chairman wants to surveil what Wall Street traders are doing on their personal phones.
The SEC’s $393 million in fines are the latest round in Mr. Gensler’s WhatsApp sweep. More than five dozen firms have been fined some $2 billion for allegedly violating SEC record-keeping rules because some employees used non-company phones and messaging apps to communicate about business.
Mr. Gensler’s dragnet started in 2021 with the Wall Street giants and has expanded to smaller broker-dealers, investment advisers and private funds. The latest targets include Raymond James, Piper Sandler & Co., Edward D. Jones & Co., Cowen & Co. and P. Schoenfeld Asset Management, among others.
The SEC has demanded that firms search employees’ personal phones and hand over evidence of business-related communications. It also has dangled smaller fines for firms that cooperate with its investigation of alleged records-keeping violations.The agency says firms are required by the 1934 Securities Exchange Act and 1940 Investment Advisers Act to preserve business records for regulators to review in audits or investigations. But business records then involved hard documents. It’s much harder now for companies to police and preserve employees’ electronic communications.
Nearly all the fined firms had policies in place that prohibit employees from using personal devices and messaging channels like WhatsApp for business. They also record employees’ communications and activities on work devices. Companies don’t want employees using unapproved platforms for security reasons. But enforcing such rules is difficult.
While the agency claims off-channel communications by Wall Street employees is “pervasive,” its consent decrees with the fined individual firms cite a handful of examples with scant detail about the substance of the communications. The SEC doesn’t say it has uncovered evidence of securities violations.
Source: https://gellerreport.com/2024/08/sec-chairman-gary-gensler-imposes-393-million-in-fines-against-firms-for-failing-to-track-the-personal-phones-of-its-employees.html/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.