By Connor Hart

Twelve firms will pay a combined $63.1 million to resolve allegations from the Securities and Exchange Commission that they failed to properly keep records.

Each firm used unapproved communication methods, or off-channel communications, to send and receive messages that were required to be maintained under the securities laws, the agency said Monday. These failures involved personnel at multiple levels of authority, including supervisors and senior managers.

Under the settlement, investment firms Blackstone and KKR will pay $12 million and $11 million, respectively.

"We are pleased to have resolved this matter," a Blackstone spokesperson said. "We have already taken significant steps to further strengthen our electronic communications procedures--including before the start of this inquiry--and are committed to the highest standard of compliance."

KKR declined to comment.

Other firms included in the settlement are Charles Schwab, which will pay $10 million; Apollo Capital Management, which will pay $8.5 million; Carlyle Investment Management, which will pay $8.5 million; TPG Capital Advisors, which will pay $8.5 million; Santander US Capital Markets, which will pay $4 million; and PJT Partners, which will pay $600,000.

A Charles Schwab spokesperson said the company is "pleased to resolve this immaterial matter and remain focused on delivering exceptional service and an outstanding experience to our clients."

Apollo and TPG declined to comment. Representatives from Carlyle, Santander and PJT couldn't immediately be reached.

In addition to their payments, each firm was ordered to cease and desist from future violations, the SEC said.

Sanjay Wadhwa, acting director of the SEC's Division of Enforcement, said the agency relies on companies to comply with recordkeeping requirements to effectively carry out its oversight responsibilities.

"When firms fall short of those obligations, the consequences go far beyond deficient document productions; such failures implicate the transparency and the integrity of the markets and their participants, like the firms at issue here," he said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 13, 2025 17:55 ET (22:55 GMT)

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