The Securities and Exchange Commission is investigating Goldman Sachs Group Inc. over messages sent using communications channels not approved by the company, according to a report by Advisor Hub.
The firm said in a regulatory filing that it is cooperating with the SEC and providing the documents necessary for the investigation. Goldman Sachs noted that the SEC is conducting similar probes at other financial institutions regarding their record preservation practices.
In one case, JP Morgan Chase & Co. was fined $200 million by the SEC and Commodity Futures Trading Commission in December 2021 for employees sending work-related communication via messaging services such as WhatsApp, personal mobile devices or personal email addresses.
HSBC Holdings Plc is the subject of a similar investigation by the CFTC over the use of non-HSBC approved messaging platforms for business communications.
Financial firms are required to monitor and save employee communications involving their business and customers, but compliance became more challenging when many employees began working remotely during the pandemic. Investigators have encouraged firms to self-report violations they become aware of.
The attorneys at Hyman Cotter PC include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. If your firm is facing an investigation from a regulatory agency, please contact us at 312-291-4600 or through our online contact form.
