Piper Sandler settles investigations into unapproved business communications.
The company joins a growing list of financial firms penalized for record-keeping failures.
The
investment banking firm, Piper Sandler, has agreed to pay $16 million in civil
penalties to settle investigations by U.S. regulators into its record-keeping
practices. The settlement, announced on Tuesday, marks the latest development
in a broader crackdown on Wall Street's communication compliance.
Piper Sandler to Pay $16
Million in Regulatory Fines over Communication Lapses
The
Minneapolis-based firm will pay $14 million to the Securities and Exchange
Commission (SEC) and $2 million to the Commodity Futures Trading Commission
(CFTC). These fines stem from probes into unapproved business-related
communications conducted on messaging platforms.
“The
Company has reached agreements in principle with the staff of the SEC and with
the staff of the CTFC to resolve investigations regarding compliance with
recordkeeping requirements for business-related communications sent over
unapproved electronic messaging channels,” the company commented in the newest
filing.
The
information about the settlement appeared in the investment bank's latest revenue report for Q2 2024. It shows that the company's revenues reached $340 million, up from $290 million reported the previous year. As a result, net profit was $14.9 million, and earnings per common share (EPS) was $2.19,
compared to $0.26 in Q2 2023.
Last month, the CFTC also reached a historically significant settlement with the bankrupt cryptocurrency exchange FTX, valued at $12.7 billion. This settlement concludes a legal dispute lasting over a year and a half, which includes $8.7 billion in restitution and $4 billion in disgorgement.
The Tip of the $1.7
Billion Iceberg
The action
against Piper Sandler is part of a multi-year initiative by the SEC to
scrutinize how financial institutions document and preserve employee
communications, particularly in light of the shift to remote work during the
COVID-19 pandemic.
Regulators
require banks and investment firms to maintain comprehensive records of staff
communications and generally prohibit the use of personal email, texts, and
messaging applications for work-related matters.
Since 2021,
the SEC has imposed fines totaling over $1.7 billion on numerous firms for
similar compliance failures. Major banks such as JPMorgan Chase and Wells
Fargo have also faced penalties in this regulatory sweep.
The penalty
for JPMorgan was
particularly large, amounting to nearly $350 million in March this year.
However, it turned out that the alleged misconduct occurred over nearly a
decade, from 2014 to 2023.
The Piper
Sandler case highlights the difficulties broker-dealers and investment advisers
face in meeting record-keeping requirements amidst the rising prevalence of
off-channel communications. Earlier this year, Oppenheimer settled similar
charges with the SEC, agreeing to pay $12 million in civil penalties. Together
with Oppenheimer, 15 other broker-dealers and investment advisers also
received penalties at that time.
The
investment banking firm, Piper Sandler, has agreed to pay $16 million in civil
penalties to settle investigations by U.S. regulators into its record-keeping
practices. The settlement, announced on Tuesday, marks the latest development
in a broader crackdown on Wall Street's communication compliance.
Piper Sandler to Pay $16
Million in Regulatory Fines over Communication Lapses
The
Minneapolis-based firm will pay $14 million to the Securities and Exchange
Commission (SEC) and $2 million to the Commodity Futures Trading Commission
(CFTC). These fines stem from probes into unapproved business-related
communications conducted on messaging platforms.
“The
Company has reached agreements in principle with the staff of the SEC and with
the staff of the CTFC to resolve investigations regarding compliance with
recordkeeping requirements for business-related communications sent over
unapproved electronic messaging channels,” the company commented in the newest
filing.
The
information about the settlement appeared in the investment bank's latest revenue report for Q2 2024. It shows that the company's revenues reached $340 million, up from $290 million reported the previous year. As a result, net profit was $14.9 million, and earnings per common share (EPS) was $2.19,
compared to $0.26 in Q2 2023.
Last month, the CFTC also reached a historically significant settlement with the bankrupt cryptocurrency exchange FTX, valued at $12.7 billion. This settlement concludes a legal dispute lasting over a year and a half, which includes $8.7 billion in restitution and $4 billion in disgorgement.
The Tip of the $1.7
Billion Iceberg
The action
against Piper Sandler is part of a multi-year initiative by the SEC to
scrutinize how financial institutions document and preserve employee
communications, particularly in light of the shift to remote work during the
COVID-19 pandemic.
Regulators
require banks and investment firms to maintain comprehensive records of staff
communications and generally prohibit the use of personal email, texts, and
messaging applications for work-related matters.
Since 2021,
the SEC has imposed fines totaling over $1.7 billion on numerous firms for
similar compliance failures. Major banks such as JPMorgan Chase and Wells
Fargo have also faced penalties in this regulatory sweep.
The penalty
for JPMorgan was
particularly large, amounting to nearly $350 million in March this year.
However, it turned out that the alleged misconduct occurred over nearly a
decade, from 2014 to 2023.
The Piper
Sandler case highlights the difficulties broker-dealers and investment advisers
face in meeting record-keeping requirements amidst the rising prevalence of
off-channel communications. Earlier this year, Oppenheimer settled similar
charges with the SEC, agreeing to pay $12 million in civil penalties. Together
with Oppenheimer, 15 other broker-dealers and investment advisers also
received penalties at that time.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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