In this latest SEC enforcement, the following 12 firms will pay a combined $63.1 million to resolve SEC allegations that they failed to properly keep records and have begun implementing improvements to their compliance policies and procedures to address these violations:

Blackstone Alternative Credit Advisors, together with Blackstone Management Partners and Blackstone Real Estate Advisors: $12 million
Kohlberg Kravis Roberts & Co.: $11 million
Charles Schwab & Co.: $10 million
Apollo Capital Management: $8.5 million
Carlyle Investment Management, together with Carlyle Global Credit Investment Management, and AlpInvest Partners: $8.5 million
TPG Capital Advisors: $8.5 million
Santander US Capital Markets: $4 million
PJT Partners: $600,000 (PJT Partners self-reported its violations and, as a result, will pay significantly lower civil penalties, according to the SEC.)

“In order to effectively carry out their oversight responsibilities, the Commission’s Examinations and Enforcement Divisions must, and indeed do, rely heavily on registrants complying with the books and records requirements of the federal securities laws,” said Wadhwa.
Each of the SEC’s investigations uncovered the use of unapproved communication methods, known as off-channel communications, by employees at these firms, including supervisors and senior managers.

Instant Insights /

Charles Schwab & 11 other firms fined $63M by SEC, in ‘off-channel’ texting crackdown

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