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Message Received: SEC Zeros In On Off-Channel Communication | K&L Gates LLP

SEC Division of Examinations Prioritizes Off Channel Communication

The SEC Division of Examinations released its 2023 examination priorities. Alongside continuing SEC sweep examinations into electronic communication and record keeping, firms should be on alert for compliance with communication policies and demonstrate robust recordkeeping.

CFTC Orders 11 Financial Institutions To Pay Over $710 Million For Recordkeeping And Supervision Failures For Widespread Use Of Unapproved Communication Methods - Registered Swap Dealers And Fcms Admit Use Of Texts, Whatsapp And Other Unapproved Methods To Conduct Business

<p><span>The Commodity Futures Trading Commission today issued orders simultaneously filing and settling charges against swap dealer and futures commission merchant (FCM) affiliates of 11 financial institutions for failing to maintain, preserve, or produce records that were required to be kept under CFTC recordkeeping requirements, and failing to diligently supervise matters related to their businesses as CFTC registrants.</span></p>

Statement Of CFTC Commissioner Kristin N Johnson Regarding CFTC Orders For $700 Million Penalty Against Bank-Affiliated Entities For Offline Communications

<p><span>Today, the Commodity Futures Trading Commission (CFTC or Commission) issued a series of orders settling charges against swap dealers and affiliated futures commission merchants</span><a href="https://www.cftc.gov/PressRoom/SpeechesTestimony/johnsonstatement092722# ftn1">[1]</a><span>&nbsp;(Bank-Affiliated Entities) for failing to maintain, preserve, and produce records in compliance with CFTC recordkeeping requirements and for failing to diligently supervise matters related to their businesses as CFTC registrants. These orders require market participants who failed to meet legal and compliance obligations under the Commodity Exchange Act (CEA) and CFTC regulations to pay over $700 million in civil monetary penalties collectively and to implement immediate and effective remediation measures to ensure appropriate recordkeeping and supervision.</span></p>

Wind Farms Fight Citi s $118M Bill For Texas Storm Energy

ADVERTISEMENT ADVERTISEMENT Wind Farms Fight Citi s $118M Bill For Texas Storm Energy Law360 (April 21, 2021, 11:44 PM EDT) Two wind farms asked a Texas state court Wednesday to block Citibank NA from foreclosing on their businesses, after the bank s energy unit billed them more than $118 million for replacement power during the deadly winter storm earlier this year, noting that prices increased by 30,000% during the storm. Shannon Wind LLC and Flat Top Wind I LLC, which are both owned by the Canadian energy company Innergex Renewable Energy Inc., said in separate petitions that they told the bank they were exempted from the staggering bills by force majeure clauses, but that Citigroup Energy Inc. wrongly rejected their claims..

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