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.
