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April 04, 2024 at 08:17 AM
What You Need to Know
- Senvest employees communicated about company business internally and externally using personal texting platforms
- Two former SEC attorneys predicted in late March that texting fines against RIAs were likely on their way.
- Senvest also failed to maintain or preserve the off-channel communications.
The Securities and Exchange Commission texting crackdown continued Wednesday when the regulator ordered RIA Senvest Management to pay $6.5 million for communicating about company business internally and externally using personal texting platforms and other non-Senvest messaging applications in violation of the firm’s policies and procedures.
The SEC said New York-based Senvest engaged in “widespread and longstanding failures” to maintain and preserve certain electronic communications, and charged the firm with failing to enforce its code of ethics.
Two former SEC attorneys predicted in late March that texting fines against investment advisory firms were likely on their way.
Senvest admitted the facts set forth in the Commission’s order, acknowledged that its conduct violated the federal securities laws and agreed to pay the penalty and to improve its compliance policies and procedures.
Eric Werner, director of the Fort Worth Regional Office, said Wednesday in a statement that the SEC “continues to focus on regulated entities’ compliance with the recordkeeping requirements. Adherence to these requirements is essential for the Commission to effectively exercise its regulatory oversight and enforce the federal securities laws.”
See: Cambridge, Northwestern Mutual Among 16 Firms Hit With Texting Fines
