Defendant Name: Scotia Capital (USA) Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: The Bank of Nova Scotia
SIC Code: 6021
CUSIP: 06414910

Initial Case Details

Legal Case Name In the Matter of Scotia Capital (USA) Inc.
First Document Date 11-May-2023
Initial Filing Format Administrative Action
File Number 3-21409
Allegation Type Broker Dealer

Violations Alleged

Other
• Failure to supervise under Section 15(b)(4)(E) Exchange Act

Resolutions

First Resolution Date 11-May-2023
Headline Total Penalty and Disgorgement $7,500,000

Related Documents:

34-97477 11-May-2023 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On May 11, 2023, the SEC instituted settled administrative and cease-and-desist proceedings against Scotia Capital (USA), stating: "From at least January 2020 to December 2021, SCUSA employees sent and received off-channel communications that related to the business of the broker-dealer operated by SCUSA. Respondent did not maintain or preserve the substantial majority of these written communications. SCUSA’s failure was firm-wide, and involved employees at all levels of authority. As a result, SCUSA violated Section 17(a) of the Exchange Act and Rule 17a-4(b)(4) thereunder. . . . SCUSA’s widespread failure to implement its policies and procedures that prohibit such communications led to its failure to reasonably supervise its employees within the meaning of Section 15(b)(4)(E) of the Exchange Act."
2023-91_3-21409 11-May-2023 Press Release--Administrative Proceeding
SEC Charges HSBC and Scotia Capital with Widespread Recordkeeping Failures
On May 11, 2013, the SEC stated that: "[It] charged HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc. for widespread and longstanding failures by both firms and their employees to maintain and preserve electronic communications. To settle the charges, HSBC and Scotia acknowledged that their conduct violated recordkeeping provisions of the federal securities laws and agreed to pay penalties of $15 million and $7.5 million, respectively."