The Blubber

The SEC has collected thousands of staff messages used on private devices from more than a dozen major investment companies, including Carlyle, Apollo, KKR, TPG, Blackstone and Citadel, per Reuters.

The regulatory body is currently examining discussions related to work transmitted via personal devices or applications by employees at firms such as Blackstone Inc., Apollo Global Management Inc., and Carlyle Group Inc. This information, reported by Reuters, cites individuals with direct knowledge of the matter who have chosen to remain anonymous.

In previous investigations involving broker-dealers, the SEC had requested companies to provide feedback on staff communications, with regulatory authorities reviewing only a subset of these messages, as reported by Reuters. This information is based on insights from three individuals familiar with past investigations.

The cumulative fines resulting from these investigations into messaging practices have now exceeded $2.5 billion since December 2021, rendering it one of the most substantial financial enforcement initiatives of the past decade.

Brokers and investment advisors are obligated to oversee and archive communications pertaining to their business operations to prevent misconduct. Regulators contend that failure to do so complicates the investigation of any potential wrongdoing. The use of messaging tools that automatically delete communications further exacerbates the challenges faced by regulators in their efforts.