The Off-Channel Communications Sweep May Be Going Offline

Litigation attorneys Brian Briz and Allison Kernisky co-authored an article in the Futures & Derivatives Law Report discussing the decrease in U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) enforcement actions concerning "off-channel communications." Since 2021, more than 100 financial entities have faced significant penalties totaling more than $3 billion for failing to adhere to recordkeeping requirements. The authors explain how the momentum of these investigations appears to be winding down as new SEC and CFTC leadership call for pragmatic approaches and potential policy overhauls.

READ: The Off-Channel Communications Sweep May Be Going Offline