Shulou(Shulou.com)11/24 Report--

CTOnews.com, August 9 (Xinhua)-- the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) recently imposed fines of up to $549 million (CTOnews.com Note: about 3.969 billion yuan) on a number of US financial institutions because they admitted that they were unable to provide records of business discussions conducted by their employees using mobile messaging apps, including "senior executives."

According to regulators, employees of these institutions use personal devices to discuss official business through apps such as iMessage, WhatsApp or Signal, while these "informal communications" are not "preserved or retained". This violates the record retention rules of the Securities Exchange Act of 1934, similar to the Investment Advisers Act of 1940, and the record retention requirements of the CFTC.

Of these, Wells Fargo will pay the most fines, accounting for nearly half of the total fines of SEC, at $125 million, plus a settlement of $75 million to CFTC. Gurbir S. Grewal, director of law enforcement at SEC, said: "for those institutions that have not yet done so, here are three suggestions: self-reporting, cooperation and remediation. If you adopt this strategy, you will have better results than when you wait for us to knock."

Here are the fines agreed by the banks with SEC and CFTC:

Wells Fargo Securities (Wells Fargo Securities, LLC), Wells Fargo Clearing Services (Wells Fargo Clearing Services, LLC) and Wells Fargo Advisors Financial Networks (Wells Fargo Advisors Financial Network, LLC) agreed to pay a fine of $125 million

BNP Paribas Securities (BNP Paribas Securities Corp.) and Societe Generale American Securities (SG Americas Securities, LLC) each agreed to pay a fine of $35 million.

Bank of Montreal Capital Markets (BMO Capital Markets Corp.) and Mizuho Securities USA (Mizuho Securities USA LLC) each agreed to pay a fine of US $25 million.

Hollihan Rocky Capital (Houlihan Lokey Capital, Inc.) agreed to pay a fine of $15 million

Moelis & Company LLC and Wedbush Securities Inc. Each agreed to pay a fine of $10 million

Japan's Sumitomo Mitsui Financial Group, SMBC Nikko Securities America, Inc., agreed to pay a $9 million fine.

BNP Paribas (BNP Paribas S.A.) And BNP Paribas Securities Corp.): $7500

Societe Generale (Societe Generale SA and SG Americas Securities, LLC): $7500

Wells Fargo (Wells Fargo Bank NA and Wells Fargo Securities LLC): $7500

Bank of Montreal (Bank of Montreal): $3500

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