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Mayer Brown

Whats 'Appening? The Impact of Technologies on Legal Formality Requirements?

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While lawyers may still be wary of using WhatsApp in their professional life, the business world has been eager to embrace it. But what weight does a WhatsApp message (or the content of any messaging platform) have and how...more

Akin Gump Strauss Hauer & Feld LLP

“Under the Wire” E-Comms Settlements: More Confusion Than Closure

On January 13, 2025, the U.S. Securities and Exchange Commission announced settled enforcement actions with five registered investment advisers for failing to maintain and preserve internal electronic communications. These...more

Vinson & Elkins LLP

Ephemeral Sweeps: President-Elect Trump’s SEC Expected to Abandon Probes into Use of WhatsApp and “Off-Channel” Messaging...

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After a three-year crackdown on the use of “ephemeral” electronic messaging platforms by the United States Securities and Exchange Commission (“SEC”) under Chair Gary Gensler, early indications are that the incoming Trump...more

BakerHostetler

Deeper Dive: Preserving Ephemeral Messaging - Capture Data Before Its Ghosts Haunt Your Compliance

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Organizations whose mantra is “We just never delete anything” (i.e., organizations simply retaining all information indefinitely) are now facing headwinds, especially when the information contains personal information. As our...more

White & Case LLP

SEC Continues Focus on Off-Channel Communications

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On August 14, the U.S. Securities and Exchange Commission (“SEC”) announced yet another wave of enforcement actions related to widespread “off-channel communications,” charging an additional 26 firms with failing to maintain...more

Sullivan & Worcester

SEC and CFTC Continue Their Lucrative Pursuits of Penalizing Unapproved Communication Methods

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SEC's and CFTC's Enforcement Actions Against Multiple Firms - In its continued pursuit of rooting out and penalizing broker-dealers and investment advisers for their failure to prevent unapproved communication methods, the...more

Array

This Week in eDiscovery: The Duty to Preserve Ephemeral App Data, Employee Compliance with Electronic Communication Rules

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Every week, the Array team reviews the latest news and analysis about the evolving field of eDiscovery to bring you the topics and trends you need to know. This week’s post covers the week of July 8-14. Here’s what’s...more

Carlton Fields

Regulators Hit Jackpot: Off-Channel Communications

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Several years before announcing the first “off-channel” communications enforcement action, the SEC and FINRA cautioned broker-dealers and investment advisers about problematic record-keeping practices involving the use of...more

Thomas Fox - Compliance Evangelist

Messaging App Compliance in Regulated Industries: Lessons from Recent Enforcement Actions

In recent years, regulated industries, particularly broker dealer firms like Wells Fargo and Morgan Stanley, have faced increased scrutiny from regulatory bodies due to their lack of compliance in policing messaging apps. The...more

Epiq

Proceed With Caution: Understanding 2023 DOJ Guidance on Ephemeral Messaging

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The corporate world has once again been forced to adapt as communication trends change. When ephemeral messaging first gained popularity, it was merely a fun way to send disappearing pictures or messages to friends over apps...more

Paul Hastings LLP

DOJ's Approach to Ephemeral Messaging is Not Ephemeral: New Guidance on Messaging, Personal Devices

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On March 3, 2023, Assistant Attorney General Kenneth A. Polite announced significant revisions to the Department of Justice (“DOJ”) Criminal Division’s Evaluation of Corporate Compliance Programs (“ECCP”) specifically focused...more

Fisher Phillips

WhatsApp Messages May Be Gone But Never Forgotten – At Least Not By the DOJ: Your Company’s 6-Step Action Plan

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When your employees go “off-grid” and use unauthorized third-party messaging applications that fall beyond typical email and texting – like the self-destructing WhatsApp messages – they put you at increasing risk of scrutiny...more

Morrison & Foerster LLP

SEC Targeting RIAs for Use of “Off-Channel” Communications

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Recent reports indicate that the Securities and Exchange Commission (SEC) is increasing its attention on registered investment advisers (RIAs) and their oversight and recordkeeping responsibilities related to employees’ use...more

Wilson Sonsini Goodrich & Rosati

Banks Fined $2 Billion for Employees’ “Off-Channel” Communications—Is Your Industry at Risk?

On September 27, 2022, the U.S. Securities and Exchange Commission (SEC) announced settlements against 11 major financial institutions, resolving an industry sweep into employees improperly using personal messaging...more

Katten Muchin Rosenman LLP

Financial Markets and Funds Quick Take | Issue 8

SEC Advertising Rules – Client Resource Center - November 4 was the compliance date for the new rule governing advertising and solicitation activities by investment advisers. The new rule substantially revises decades old...more

Paul Hastings LLP

Latest DOJ Guidance and Non-US Companies: What to Expect and How to Handle it

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Since his election, President Joe Biden has loudly reaffirmed U.S. ambitions in the fight against global corruption, domestically and abroad. Thus, in June 2021 the “Biden memorandum” declared the fight against...more

Amundsen Davis LLC

Regretful Texts? Texts Cost Broker-Dealers $1.1 Billion

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Broker-dealers are required to maintain records of any communications received relating to the firm’s business. The SEC recently charged 16 broker-dealers with recordkeeping violations for off-channel communications that were...more

Hanzo

Compliance Update: Unauthorized Messaging Apps Lead to 1.8B in Fines

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According to a recent press release from the Securities Exchange Commission (SEC), sixteen Wall Street firms were fined for widespread and longstanding failures by the organizations and their employees to maintain and...more

Paul Hastings LLP

Ephemeral Messaging at the Office: Avoiding Pitfalls and Establishing Best Practices

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Users of ephemeral messaging applications may intend that their messages be—as the word “ephemeral” suggests—short lived, but the real-world consequences and legal ramifications from improper use of such apps can be anything...more

Carlton Fields

What’s Up With WhatsApp and Text Messaging? SEC and FINRA Weigh In

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The SEC requires broker-dealers to maintain originals of all communications received and copies of all communications sent by the broker-dealer relating to its business for three years. The SEC has explained that Rule 17a-4...more

Eversheds Sutherland (US) LLP

Enforcement appears as messages disappear: The perils of personal and ephemeral messaging

On December 17, 2021, a financial institution agreed to pay $200 million in fines to the Securities and Exchange Commission and Commodities Futures Trading Commission for allowing employees to discuss business on their...more

A&O Shearman

SEC And CFTC Bring $200 Million Settled Action Against Financial Institution For Alleged Violations Of Record-Keeping Requirements...

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On December 17, 2021, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) announced that each had entered into an agreement with J.P. Morgan Securities (the “Company”) to resolve...more

A&O Shearman

Remote working: No excuse for non-compliance with obligations to record telephone conversations and electronic communications

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The UK Financial Conduct Authority (FCA) has emphasised in the latest edition of its Market Watch Newsletter its expectations for firms to record telephone conversations and electronic communications in light of the increased...more

Cohen & Gresser LLP

Firm Chat Application Policy: The Consequences of the UK FCA’s 2020 Prosecution of Konstantin Vishnyak

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The need for tighter control on employees’ use of chat applications when conducting or discussing company business. What we learned from the FCA’s 2020 Vishnyak prosecution and the FCA’s reminder about the need to record...more

Ballard Spahr LLP

EU e-Privacy Regulation Raises Stakes for Compliance

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The European Commission's proposed e-privacy regulation sets forth obligations on handling electronic communications and clarifies obligations for seeking consent for the use of cookies. Meant to bring the e-privacy directive...more

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