Wall Street Firms to Pay $63 Million in Penalties for Record-Keeping Violations
A group of Wall Street firms, including Blackstone, Apollo Capital Management, and Carlyle, have agreed to pay more than $63 million to settle charges with the U.S. Securities and Exchange Commission (SEC) for violating record-keeping rules. The firms, which also include Kohlberg Kravis Roberts & Co., Charles Schwab & Co., AlpInvest Partners B.V., TPG Capital Advisors LLC, Santander US Capital Markets LLC, and PJT Partners LP, admitted to violating rules related to employee use of off-channel communication platforms, such as WhatsApp.
The firms, which have begun implementing improvements to their compliance policies and procedures, are the latest to settle related charges as part of the SEC’s investigative sweep, launched in 2021 under outgoing SEC chair Gary Gensler. The sweep has ensnared numerous big banks and other firms over the past few years.
The settlements follow a major initiative by the SEC to strengthen oversight of the financial industry and ensure compliance with record-keeping rules. The move is also part of a broader effort to prevent and detect wrongdoing in the financial industry.
The $63 million in penalties is the latest in a series of stiff penalties paid by Wall Street firms to settle charges related to record-keeping violations over the past few years. The firms have agreed to pay the funds to settle the charges and avoid potentially lengthier and more costly legal proceedings. The settlements are seen as a major win for the SEC, which has been pushing to strengthen oversight of the financial industry and ensure compliance with regulatory rules.