Registered investment adviser Senvest Management agreed to pay $6.5 million as part of a settlement with the Securities and Exchange Commission (SEC) addressing admitted off-channel communications violations and separate code of ethics failures.
Senvest joined the growing list of firms penalized by the SEC for failing to maintain and preserve certain electronic communications by employees for conducting business. The firm’s violations occurred between January 2019 and December 2021 and were observed among senior managers, despite Senvest policies and procedures stating the use of unapproved electronic communication methods was not permitted, the SEC announced in a press release Wednesday.
Like its counterparts, Senvest was required by the SEC to retain a compliance consultant to review its policies and procedures regarding the retention of off-channel communications and its framework for addressing related noncompliance by its employees.
The SEC also dinged the firm for failing to enforce its code of ethics’ requirements that its employees obtain pre-clearance for all securities transactions in their personal accounts.
“By failing to adequately implement these policies and procedures, Senvest failed to timely detect pre-clearance failures,” the agency noted in its order.
Senvest could not be reached for comment.
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