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.
