SEC-PR-2501-6 (Jan. 13, 2025) (SEC-PR-2501) Twelve Firms to Pay More Than $63 Million Combined to Settle SEC’s Charges for Recordkeeping Failures – One firm received credit for self-reporting and will pay a reduced civil penalty Excerpt: Washington D.C., Jan. 13, 2025 — The Securities and Exchange Commission today announced charges against nine investment advisers and […]
Category: Recordkeeping Failures
Recordkeeping Failures in the context of regulatory compliance refer to the inadequacies or lapses in maintaining accurate, complete, and timely records as mandated by various regulatory bodies, such as the Securities and Exchange Commission (SEC) or Financial Industry Regulatory Authority (FINRA). These failures can occur due to inadequate systems, insufficient training of personnel, or a lack of adherence to established protocols, leading to missing or erroneous documentation that is critical for audits, investigations, and compliance verification. Such shortcomings can result in significant penalties, reputational damage, and legal repercussions for public companies and broker-dealers, as they hinder transparency and accountability in financial reporting and trading activities.