The Securities and Exchange Commission is finalizing settlements with about two dozen Wall Street firms to resolve probes into lapses in record keeping, Reuters reported.
The settlements are with investment advisors and broker dealers, according to the report, which cited people familiar with the matter. It marks the latest enforcement action in the regulator's two-year crackdown on Wall Street's use of WhatsApp and other messaging apps.
The fines tied to unauthorized communications on Wall Street have already topped $2.5 billion. A slew of firms, including some of the biggest names in asset management, private equity and hedge funds, have been quizzed about the use of unofficial channels.
As part of the settlements, Reuters reported that firms will admit wrongdoing and use independent contractors as part of the commitment to correct the lapses. Roughly two dozen firms are involved, the report said, and some are paying as much $50 million.
Details on some deals are expected by Sept. 30, ahead of the SEC's fiscal year-end, according to the report. An SEC spokesperson declined to comment to Reuters.
A wide swath of firms have disclosed that regulators are looking at their messaging practices, including the private equity titans Apollo Global Management and Carlyle Group. The other notable companies that have already been fined hundreds of millions of dollars include Wells Fargo, BNP Paribas, Bank of America, Citigroup and Goldman Sachs.
