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.
Wall Street Gets 24/7 Access to European Markets as Eurex Welcomes US Brokers
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 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:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 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
🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 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
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 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
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 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
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 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
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 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:
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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