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.
