The article discusses how the SEC has recently implicated junior and senior-level employees, largely at broker-dealers, for using unapproved communication methods. In just over a year, the SEC has levied over $1bn in fines—mostly against Wall Street firms and broker-dealers—for failing to archive client communications related to investment advice. Enforcement actions announced last week and in August involved client communications that dated back to 2019.
In the article, Andrew encourages RIAs to know the extent of off-channel communications, if any, because the SEC seems to be going back several years in its research.
Andrew is a litigator at heart whose practice focuses on representing broker/dealers, Registered Investment Advisors (“RIAs”), financial planners, Certified Financial Planners®, CFPs®, financial advisors and other financial institutions and professionals in litigation, arbitration, defense of regulatory enforcement actions, general regulatory and compliance matters, broker and advisor transition matters, guiding and counseling advisors and brokers going independent through all stages of the process, and buy/sell transactions (whether larger or smaller transactions).