CIBC pays millions to fix WhatsApp probes

Article content

US regulators have levied more than US$118 million in penalties on several financial firms for failing to retain electronic communications workers, the latest findings from the so-called WhatsApp investigation.

The largest fine, amounting to $42 million, was paid by the Canadian Imperial Bank of Commerce and two of its subsidiaries, according to statements by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Stifel, Nicolaus & Co. agreed to pay $35 million to the SEC, as did Invesco Distributors and Invesco Advisers.

Article content

The firms acknowledged the facts and have begun making internal changes, according to both the SEC and the CFTC.

“Today’s enforcement actions demonstrate the range of remedies that parties may face for violating the recordkeeping requirements of federal securities laws,” said Gurbir Grewal, director of the SEC’s legal division, in a statement on Tuesday. “Widespread and prolonged failures, including where those failures could impede the Commission’s investor protection mission by jeopardizing a company’s response to SEC subpoenas, could result in stiff civil penalties.”

Financial firms are required to monitor and maintain communications involving their businesses to eliminate inappropriate behavior. Tuesday’s penalties add to the more than US$2.5 billion the big banks previously agreed to pay to the SEC and CFTC to settle joint investigations into the use of messaging apps on personal phones and WhatsApp.

“We respect the decisions of the SEC and the CFTC on these issues,” said a spokesperson for the bank in a statement. “Throughout this process, CIBC provided its full cooperation to both regulators and took immediate steps to implement internal remedies.”

Attorneys for Stifel and Invesco did not immediately respond to messages seeking comment.

Bloomberg.com

Share this article on your social network