Ameriprise Financial disclosed it recorded a $50 million accrual related to the resolution of a Securities and Exchange Commission (SEC) probe into use of off-channel communications by its employees for conducting business.

The firm said in its latest annual report published Feb. 22 it reached an agreement in principle with SEC staff regarding the matter. With the penalty, Ameriprise would join the growing list of banks, broker-dealers, and investment advisers caught in an enforcement sweep that has already resulted in nearly $3 billion in fines against other financial services firms.

Ameriprise said it recorded the accrual in 2023, after it “responded to SEC document and information requests regarding the preservation of certain business-related communications sent on electronic messaging platforms that have not been approved by the company.”

The SEC has made clear the path for financial firms to earn smaller penalties for off-channel communications violations is to voluntary self-disclose and remediate.