01.26.22

SEC Officials Urge Firms to Update Compliance to Cope With Emerging Technologies

by: Mark Schoeff, Jr.

The SEC said that financial firms must ensure their compliance programs keep pace with emerging technologies. The commission recently ordered JPMorgan to pay $125 million for failing to keep track of employee communications about business on their personal devices through text messaging applications. “I think the message is that firms need to adapt their internal controls and corporate compliance programs to evolving technologies,” Sanjay Wadhwa, deputy director of the SEC Enforcement Division, said during an online conference hosted by the Northwestern University Pritzker School of Law. Gurbir Grewal, director of the division, said, "You need bespoke policies, policies that really address risks you face as a firm in your particular space.”

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