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 is pushing for the SEC to release documents regarding its “recordkeeping sweep initiative,” which resulted in fines for broker-dealers who were found to be storing communications on personal devices rather than official channels. The lawsuit points out the SEC’s extensive authority in investigations and enforcement, calling out a lack of transparency in how fines were determined and the rationale behind them. This legal challenge comes amid a larger discussion on the openness and responsibility of regulatory agencies.
