Amy Lynch comments on latest SEC case in lead story (CNBC)

The SEC’s recent announcement of enforcement actions, including large fines against several well-known Wall Street firms, may have been a rude awakening for the industry. FrontLine Compliance Founder and President Amy Lynch provides exclusive comments in a CNBC lead story on the SEC’s charges against the firms for allowing “off-channel” employee communications, such as text messaging. A former regulator with the SEC, Ms. Lynch sees the case as demonstrative of an SEC that is serious about addressing pervasive problems and long-running violations of laws. In these cases, she explains, the firms choose not to capture or may not have been aware that automated systems exist to capture the communications, and in turn it led to violations of SEC requirements for record-keeping and maintaining communications. See CNBC, “Wall Street’s texting problem forces unhappy regulators to send a billion dollar message”