SEC "WhatsApp" Enforcement Continues

The SEC continues its enforcement over recordkeeping violations announcing February 9, 2024 its settlement with 16 more financial firms for a combined amount of over $81 million. This is what I have separately termed the “WhatsApp Enforcement”. In a nutshell, these enforcement actions pertain to the SEC’s efforts to enforce recordkeeping requirements across non-traditional channels, e.g., Teams, WhatsApp, and other forms of instant messaging. The WhatsApp Enforcement had its inception in enforcement actions against JPMorgan. Since that time, enforcement has been pursued against every major investment bank and many other financial institutions. These enforcement actions accent the importance of capturing records no matter how they are made, including via non-traditional channels.