MINNEAPOLIS, Dec. 3 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper Jaffray
(Piper Jaffray) today announced that it has reached a settlement with its
three primary regulators, concerning the firm's e-mail retention practices.
The settlement with the SEC, NASD and NYSE, to which four other Wall Street
firms are also party, fully resolves the matter. Under the terms of the
settlement, each of the five Wall Street firms, including Piper Jaffray, have
agreed to each pay $1,650,000 in fines.
The regulators allege that the firms violated the record-keeping
requirements of SEC Rule 17a-4, which requires securities firms to preserve
for a period of not less than three years, the most recent two years in an
"accessible place," communications relating to their "business as such."
While Piper Jaffray did in fact retain large volumes of e-mail, its retention
of email communications and procedures was deemed inadequate to meet the
requirements of the rule.
"We are confident that our current email procedures and enhanced software
fully meets all of the regulatory requirements for e-mail retention," said
Andrew Duff, president and chief executive officer of Piper Jaffray.
The settlement involves only an alleged failure to retain e-mail in
compliance with the rule; there is no allegation or finding that Piper
Jaffray's email retention practices obstructed or impeded any investigation.
U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based
U.S. Bancorp (NYSE: USB), is a focused securities firm comprised of three
divisions: Equity Capital Markets, Fixed Income Capital Markets and Private
Advisory Services. The firm provides a full range of investment products and
services to individuals, institutions and businesses. The firm has over
120 offices in 23 states across the country. The Equity Capital Markets
Division focuses on the needs of growth companies in the health care,
technology, financial institutions, consumer and communications growth
sectors. The firm has a national reputation for its expertise in fundamental
research and equity and debt financing. The Fixed Income Capital Markets
business provides bond issuers, individual investors and institutional
investors expertise in investment banking, underwriting, trading, sales and
research. The firm offers innovative solutions in corporate and government
debt financings with particular expertise in corporate, health care/hospitals,
real estate, higher education and government debt. The Private Advisory
Services division financial advisors provide guidance in retirement planning,
education planning, estate planning and wealth accumulation. Investors select
from a wide array of products, including fee-based products, stocks, bonds,
mutual funds, annuities, insurance and trust services. U.S. Bancorp offers a
comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp
Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray.
For more information on U.S. Bancorp Piper Jaffray, visit
Nondeposit investment products are not insured by the FDIC, are not
deposits or other obligations of or guaranteed by U.S. Bank National
Association or its affiliates, and involve investment risks, including
possible loss of the principal amount invested. Securities products and
services are offered through U.S. Bancorp Piper Jaffray Inc., member SIPC and
NYSE, Inc., a subsidiary of U.S. Bancorp. (5/99-0679)
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SOURCE U.S. Bancorp Piper Jaffray