Raymond James paid $50 million over widespread off-channel communications recordkeeping failures
Company: Raymond James Financial, Inc.
Summary
In August 2024 the SEC announced enforcement actions against numerous broker-dealers and investment advisers for widespread and longstanding failures to maintain and preserve required electronic communications. Raymond James & Associates and Raymond James Financial Services were among the firms sanctioned. Employees used unapproved communication methods, including personal messaging platforms, to discuss business matters that federal securities laws required firms to preserve. The SEC stated that failures to retain these communications can hinder regulatory investigations and examinations by depriving regulators of potentially relevant evidence. Raymond James agreed to pay a $50 million civil penalty and undertook remedial measures intended to improve electronic-communications compliance and recordkeeping. Primary source: SEC — Twenty-Six Firms to Pay More Than $390 Million for Widespread Recordkeeping Failures: https://www.sec.gov/newsroom/press-releases/2024-98