Compliance January 14, 2025

SEC Fines 12 Firms $63M for Failing to Maintain Proper Electronic Records

The SEC has charged nine investment advisers and three broker/dealers for violations of federal recordkeeping laws.

Reported by

The Securities and Exchange Commission announced charges totaling $63 million against nine investment advisers and three broker/dealers for failing to maintain and preserve electronic communications.

In recent years, the SEC has intensified its scrutiny of recordkeeping practices across the financial industry. The broader regulatory focus on transparency comes amid growing use of electronic communications and off-channel methods.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The 12 firms charged include:

  • Blackstone Alternative Credit Advisors LP, together with Blackstone Management Partners LLC and Blackstone Real Estate Advisors L.P., agreed to pay a combined $12 million penalty;
  • Kohlberg Kravis Roberts & Co. L.P., also known as KKR & Co., agreed to pay an $11 million penalty;
  • Charles Schwab & Co. Inc. agreed to pay a $10 million penalty;
  • Apollo Capital Management L.P. agreed to pay an $8.5 million penalty;
  • Carlyle Investment Management LLC, together with Carlyle Global Credit Investment Management LLC and AlpInvest Partners B.V., agreed to pay a combined $8.5 million penalty;
  • TPG Capital Advisors LLC agreed to pay an $8.5 million penalty;
  • Santander US Capital Markets LLC agreed to pay a $4 million penalty; and
  • PJT Partners LP, which self-reported, agreed to pay a $600,000 penalty.

The SEC charged the firms with violating recordkeeping provisions of the Investment Advisers Act or the Securities Exchange Act and failing to reasonably supervise personnel to prevent and detect these violations. The violations involved employees across multiple levels, including supervisors and senior managers.

“In order to effectively carry out their oversight responsibilities, the Commission’s Examinations and Enforcement Divisions must, and indeed do, rely heavily on registrants complying with the books and records requirements of the federal securities laws,” Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, said in a statement.

In addition to the financial penalties, the firms were ordered to cease and desist from future violations of relevant recordkeeping provisions, implement measures to improve their compliance policies and procedures, and accept censure from the SEC.

The firms involved have admitted to the violations and agreed to pay civil penalties, while committing to implement compliance improvements to address the shortcomings.

Products January 14, 2025

John Hancock Retirement Announces Partnership With Vestwell

Vestwell will power FutureStep by John Hancock, an open-architecture retirement plan offering.

Reported by

John Hancock Retirement, a division of Manulife Wealth and Asset Management, has launched FutureStep, an open-architecture retirement plan offering powered by plan provider Vestwell.

The digital addition to the firm’s existing plan suite is set to launch in early 2025, providing plan advisers with a platform to scale their retirement plan practices. The FutureStep interface is designed to facilitate interactions between advisers, employers and savers.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“As a multiplatform provider, we’ve added FutureStep so we can continue to expand the number of plans and participants that we serve as a complement to our existing plan options,” Wayne Park, CEO of John Hancock Retirement, said in a statement.

According to the firm, FutureStep includes competitive pricing and enhanced employer engagement. It supports personalized onboarding, ongoing administration, payroll integration and assistance with navigating complex legislation.

“Together with John Hancock Retirement, we can help address the growing demands of the industry, creating modern savings solutions that make retirement savings more affordable and accessible for all,” Aaron Schumm, founder and CEO of Vestwell, said in a statement.

John Hancock Retirement emphasized it is committed to improving retirement outcomes for small, midsize, large and Taft-Hartley plan participants.

“We’re focused on being the partner of choice for our distribution partners, TPAs, and plan sponsors by helping to make retirement planning easier and more effective,” Gary Tankersley, head of the core segment at John Hancock Retirement, said in a statement.

Manulife Wealth and Asset Management serves 19 million individuals, institutions and retirement plan members worldwide, offering global investment, financial advice and retirement services. Vestwell, meanwhile, has nearly 1.5 million saver clients across 350,000 businesses representing more than $30 billion in assets.

«