Managed Funds Association and Others Urge Narrower Enforcement of Advisers Act’s Recordkeeping Requirements
Under the leadership of SEC Chairman Gary Gensler and Director of Enforcement Gurbir Grewal, the SEC has consistently prioritized compliance with books and recordkeeping obligations for registered broker-dealers, especially with regard to the failure to preserve communications from personal devices and ephemeral messaging applications that concern company business. Since December 2021, the SEC has procured over $1 billion in penalties from registered broker dealers that failed to maintain and preserve electronic communications.
 “JP Morgan Admits to Widespread Recordkeeping Failures and Agrees to Pay $125 Million Penalty to Resolve SEC Charges,” Sec. & Exch’g Comm. (Dec. 17, 2021), available at https://www.sec.gov/news/press-release/2021-262; “SEC Charges 16 Wall Street Firms with Widespread Recordkeeping Failures,” Sec. & Exch’g Comm. (Sept. 27, 2022), available at https://www.sec.gov/news/press-release/2022-174.