(Finance) – The Securities and Exchange Commission (SEC) announced charges against five broker-dealers, three broker-dealers and investment advisors, and two investment advisors for “widespread and long-standing failures to maintain and preserve electronic communications” of their employees. The companies admitted the facts set forth in their respective SEC orders and acknowledged that their conduct violated the recordkeeping provisions of the federal securities laws.
The companies agreed to pay total fines of $79 million and have begun implementing improvements to their compliance policies and procedures to address these violations, it said in a statement.
In particular, Interactive Brokers agreed to pay a $35 million fine; Robert W. Baird & Co. of $15 million; William Blair & Company of $10 million; Nuveen Securities of 8.5 million dollars; Fifth Third Securities of $8 million; Perella Weinberg Capital, which self-disclosed, of $2.5 million.
Separately, the SEC announced charges against the rating agencies DBRS and Kroll Bond Rating Agency for failure to maintain electronic records, including out-of-channel communications on personal and work devices. Additionally, the SEC charged DBRS with violating the disclosure and internal control provisions of the federal securities laws in rating certain commercial mortgage-backed securities (CMBS).
To resolve the charges, DBRS agreed to pay 8 million of dollars in civil penalties and KBRA agreed to pay 4 million dollars in civil penalties.