Lawyers & Professionals

Firm Overview

Instead of trying to be everything to everybody, we’ve made a name for ourselves by delivering what our clients need most: in-depth, hands-on legal counsel throughout the financial services sector — and beyond.

Get to know us

Firm News

There’s a lot going on at Schulte — we’re wrapping up high-profile matters, welcoming talented new lawyers, speaking on issues that affect our clients, and more.

Read all about it

Pro Bono

Throughout our history, Schulte has provided comprehensive pro bono services to local and national nonprofit organizations. Today, we serve more than 50 nonprofits and work to advance a variety of social justice causes.

Learn more

Diversity, Equity and Inclusion

Inside the firm, we work hard to attract diverse, talented lawyers and encourage their career growth and advancement. And outside the office, we’re active in volunteer drives and local initiatives that support underrepresented groups.

See what we’re up to


If you’re a current or former Schulte lawyer, join our Alumni Network on LinkedIn to stay connected with old friends, make new contacts, and share your successes, ideas and insights.

Stay in touch

Social Responsibility

We take doing “good work” seriously — whether we’re talking about our high ethical standards or the way in which we foster a positive and inclusive culture for our personnel and support local communities.

See how we work


  • New York

    • 919 Third Avenue
    • New York, NY 10022
    • United States of America
      • +1 212.756.2000 Phone
      • +1 212.593.5955 Fax
  • Washington, DC

    • 901 Fifteenth Street, NW, Suite 800
    • Washington, DC 20005
    • United States of America
      • +1 202.729.7470 Phone
      • +1 202.730.4520 Fax
  • London

    • One Eagle Place
    • London SW1Y 6AF
    • United Kingdom
      • +44 (0) 20 7081 8000 Phone
      • +44 (0) 20 7081 8010 Fax

On Sept. 23, 2020,[1] the SEC released a cease-and-deist order imposing remedial sanctions arising out of the failure of a registered broker-dealer to retain business-related texts with clients, as required by the provisions of Section 17(a) of the Securities Exchange Act and SEC Rule 17a-4(b)(4).

The background to this action is interesting in that the violations were uncovered indirectly. During the course of an unrelated investigation, the SEC requested records from the broker-dealer that indicated the existence of text messages between the firm’s representatives and the investigation subject. When the broker was unable to furnish copies of these messages, which also were prohibited by its policies, the SEC’s subsequent investigation revealed that several employees in fact were using text messages on personal devices for business communications for a variety of trade order and market communications with clients, and that such activities were known to senior management (who had even participated in certain impermissible text messaging practices themselves). These communications were not retained in the broker’s books and records.

As part of a settlement in which the broker-dealer neither admitted nor denied wrongdoing, the firm was required to pay a $100,000 fine and is subject to a cease-and-desist order. The SEC highlighted that the broker-dealer had taken substantial remedial measures to address its violations, including employee education and implementation of a specialized retention system for employees interested in using personal devices for business communications.

While not involving an investment adviser, this case underscores the increasing importance of attention to personal device text messaging as a firm communication channel, and reaffirms that having written policies and training in this area will not immunize registrants — including registered investment advisers — whose personnel ignore firm and SEC recordkeeping requirements in practice.

This article appeared in the October 2020 edition of SRZ’s Private Funds Regulatory Update. To read the full Update, click here

[1] See SEC matter (Sept. 23, 2020), available here.

This communication is issued by Schulte Roth & Zabel LLP and Schulte Roth & Zabel International LLP for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. ©2020 Schulte Roth & Zabel LLP and Schulte Roth & Zabel International LLP. All rights reserved. SCHULTE ROTH & ZABEL is the registered trademark of Schulte Roth & Zabel LLP.