The U.S. Securities and Exchange Commission issued orders against nine investment advisers and three broker-dealers for failing to maintain and preserve required electronic communications, including the use of unapproved off-channel messaging. The firms admitted the facts in the orders, acknowledged violations of federal securities-law recordkeeping provisions, and agreed to pay combined civil penalties of USD 63.1 million. Penalties included USD 12 million for Blackstone Alternative Credit Advisors LP, Blackstone Management Partners L.L.C. and Blackstone Real Estate Advisors L.P.; USD 11 million for Kohlberg Kravis Roberts & Co. L.P.; USD 10 million for Charles Schwab & Co., Inc.; USD 8.5 million each for Apollo Capital Management L.P., the Carlyle entities (Carlyle Investment Management L.L.C., Carlyle Global Credit Investment Management L.L.C., and AlpInvest Partners B.V.), and TPG Capital Advisors LLC; USD 4 million for Santander US Capital Markets LLC; and USD 600,000 for PJT Partners LP, which self-reported and received a reduced penalty. Each firm was also charged with failing to reasonably supervise personnel, was censured, and was ordered to cease and desist from future violations, and the SEC noted the firms have begun improving compliance policies and procedures.
U.S. Securities & Exchange Commission 2025-01-13
U.S. Securities and Exchange Commission charges 12 firms for off-channel recordkeeping failures and orders USD 63.1 million in penalties
The U.S. Securities and Exchange Commission issued orders against nine investment advisers and three broker-dealers for failing to maintain required electronic communications, resulting in combined civil penalties of USD 63.1 million. Firms admitted to violating federal securities-law recordkeeping provisions and were charged with failing to supervise personnel, receiving censure and cease-and-desist orders. Penalties ranged from USD 600,000 to USD 12 million, with PJT Partners LP receiving a reduced penalty for self-reporting.