SEC-PR-2024-98 (Aug. 14, 2024)
Twenty-Six Firms to Pay More Than $390 Million Combined to Settle SEC’s Charges for Widespread Recordkeeping Failures – Three firms received credit for self-reporting and will pay reduced civil penalties
The Securities and Exchange Commission today announced charges against 26 broker-dealers, investment advisers, and dually-registered broker-dealers and investment advisers for widespread and longstanding failures by the firms and their personnel to maintain and preserve electronic communications.
The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of the federal securities laws, agreed to pay combined civil penalties of $392.75 million, as outlined below, and have begun implementing improvements to their compliance policies and procedures to address these violations. Three of the firms, as noted below, self-reported their violations and, as a result, will pay significantly lower civil penalties than they would have otherwise.
- Ameriprise Financial Services, LLC agreed to pay a $50 million penalty
- Edward D. Jones & Co., L.P. agreed to pay a $50 million penalty
- LPL Financial LLC agreed to pay a $50 million penalty
- Raymond James & Associates, Inc. agreed to pay a $50 million penalty
- RBC Capital Markets, LLC agreed to pay a $45 million penalty
- BNY Mellon Securities Corporation, together with Pershing LLC, agreed to pay a $40 million penalty
- TD Securities (USA) LLC, together with TD Private Client Wealth LLC and Epoch Investment Partners, Inc., agreed to pay a $30 million penalty
- Osaic Services, Inc., together with Osaic Wealth, Inc., agreed to pay an $18 million penalty
- Cowen and Company, LLC, together with Cowen Investment Management LLC, agreed to pay a $16.5 million penalty
- Piper Sandler & Co. agreed to pay a $14 million penalty
- First Trust Portfolios L.P. agreed to pay an $8 million penalty
- Apex Clearing Corporation agreed to pay a $6 million penalty
- Truist Securities, Inc., together with Truist Investment Services, Inc. and Truist Advisory Services, Inc., which self-reported, agreed to pay a $5.5 million penalty
- Cetera Advisor Networks LLC, together with Cetera Investment Services LLC, which self-reported, agreed to pay a $4.5 million penalty
- Great Point Capital, LLC agreed to pay a $2 million penalty
- Hilltop Securities Inc., which self-reported, agreed to pay a $1.6 million penalty
- P. Schoenfeld Asset Management LP agreed to pay a $1.25 million penalty
- Haitong International Securities (USA) Inc. agreed to pay a $400,000 penalty
Date: Aug. 14, 2024
Accessed: Sep. 20, 2024
Source URL: https://www.sec.gov/newsroom/press-releases/2024-98
Categories:
- SEC-2408
- Broker-Dealers
- Recordkeeping Failures
- Ameriprise Financial Services LLC
- Apex Clearing Corporation
- BNY Mellon Securities Corporation
- Cetera Advisor Networks LLC
- Cetera Investment Services LLC
- Cowen and Company LLC
- Cowen Investment Management LLC
- Edward D. Jones & Co. L.P.
- Epoch Investment Partners Inc.
- First Trust Portfolios L.P.
- Great Point Capital LLC
- Haitong International Securities (USA) Inc.
- Hilltop Securities Inc.
- LPL Financial LLC
- Osaic Services Inc.
- Osaic Wealth Inc.
- Pershing LLC
- Piper Sandler & Co.
- Raymond James & Associates Inc.
- RBC Capital Markets LLC
- Schoenfeld Asset Management LP
- TD Private Client Wealth LLC
- TD Securities (USA) LLC
- Truist Advisory Services Inc.
- Truist Investment Services Inc.
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