The Financial Industry Regulatory Authority reports that for 2013 the highest amount of its fines were generated by electronic communications, according to a recent statement. Fines totaling $15.1 million were collected from 66 cases involving alleged electronic violations, for failing to retain emails and other electronic communications like business text messages, failing to adequately supervise emails, failing to disclose to regulators information about email retention systems and producing electronic records to regulators in an improper format.
This number is a substantial increase from past years and is largely due to one $7.5 million fine in 2013 from a settlement in a case where a firm allegedly failed to properly store millions of emails. According to the statement, another significant case last year involved five affiliated firms that allegedly failed to retain or review millions of emails. That case settled for $1.2 million.
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