SEC Fines HSBC, Scotia Capital Over Use of Messaging Apps -- Update
11 Mayo 2023 - 10:27AM
Noticias Dow Jones
By Dean Seal
The Securities and Exchange Commission has fined the U.S. units
of HSBC Securities and Scotia Capital over their employees' use of
messaging applications that violated record-keeping rules.
The Wall Street regulator said Thursday that HSBC and Scotia
will pay penalties of $15 million and $7.5 million, respectively,
to resolve claims that their employees communicated "off-channel"
about securities business matters using their personal devices and
messaging platforms, including WhatsApp.
The firms broke federal securities laws by failing to keep or
preserve the majority of those communications, according to the
SEC. The agency said the failures involved supervisors and senior
executives.
HSBC said in a statement that it is pleased to have resolved the
matter.
"In recent years, we have made significant investments in
enhancing our compliance procedures and have worked diligently to
maintain the highest standards for professional conduct throughout
our organization," according to HSBC.
A representative for Scotia didn't immediately respond to a
request for comment.
HSBC and Scotia self-reported the violations after gathering
communications from the personal devices of a sample of their
respective personnel. The firms were given reduced penalties as a
result of their self-reporting, self-remediation efforts and
overall cooperation with the agency's investigation, SEC
Enforcement Director Gurbir S. Grewal said.
The Commodity Futures Trading Commission issued an order on
Thursday fining The Bank of Nova Scotia and Scotia Capital USA $15
million over the same conduct.
Last fall, both regulators ordered 11 of the world's largest
banks and brokerages to pay $1.8 billion in penalties over the same
record-keeping failures.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 11, 2023 11:12 ET (15:12 GMT)
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