American Securities Association takes legal action against SEC for lack of transparency in enforcement actions

American Securities Association takes legal action against SEC for lack of transparency in enforcement actions

The American Securities Association (ASA) has taken legal action against the U.S. Securities and Exchange Commission (SEC) on allegations of violating the Freedom of Information Act (FOIA). The ASA is pushing for the SEC to reveal documents pertaining to its “recordkeeping sweep initiative,” which resulted in fines for broker-dealers who stored unofficial communications, like text messages on personal devices. The ASA’s lawsuit emphasizes the SEC’s extensive investigative and enforcement authority while criticizing its opaque practices, including the lack of transparency in penalty calculations and rationale. This legal challenge comes amid wider discussions about the openness and responsibility of regulatory institutions.

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American Securities Association takes legal action against SEC for lack of transparency in enforcement actions

The American Securities Association (ASA) has taken legal action against the U.S. Securities and Exchange Commission (SEC) for allegedly violating the Freedom of Information Act (FOIA). The ASA is pushing for the SEC to release documents related to its “recordkeeping sweep initiative,” which targeted broker-dealers for storing off-channel communications like text messages on personal devices. The lawsuit points out the SEC’s extensive investigative and enforcement authority, criticizing its lack of transparency in how penalties were determined and the rationale behind them. This legal challenge is part of a larger discussion on the openness and responsibility of regulatory agencies.

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Your email address will not be published. Required fields are marked *

American Securities Association Takes Legal Action Against SEC for Lack of Transparency in Enforcement Actions

The American Securities Association (ASA) took legal action against the U.S. Securities and Exchange Commission (SEC) on Thursday, alleging a failure to adhere to the Freedom of Information Act (FOIA). The lawsuit aims to force the SEC to reveal documents concerning its “recordkeeping sweep initiative,” which resulted in fines for broker-dealers who stored unofficial communications, like text messages on personal devices. The ASA’s complaint points out the SEC’s significant investigative and enforcement authority and criticizes its lack of openness, particularly in how fines were determined and the rationale behind them. This legal challenge comes amid a wider discussion on the transparency and responsibility of regulatory agencies.

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Your email address will not be published. Required fields are marked *