The American Securities Association (ASA) took legal action against the U.S. Securities and Exchange Commission (SEC) on Thursday for allegedly violating the Freedom of Information Act (FOIA). The ASA aims to force the SEC to reveal documents pertaining to its “recordkeeping sweep initiative” which led to fines being imposed on broker-dealers for keeping off-channel communications, such as text messages on personal devices. The lawsuit points out the SEC’s extensive investigative and enforcement authority and criticizes its lack of transparency, especially in how fines were determined and the rationale behind them. This legal challenge comes amid a wider discussion on the openness and responsibility of regulatory agencies.
