The Securities and Exchange Commission, the New York Stock Exchange and NASD today announced joint actions against five broker-dealers for failing to keep e-mail communcations.

The firms consented to the imposition of fines totaling US$8.25 million, along with a requirement to review their procedures to ensure compliance with record-keeping statutes and rules. Each of the firms — Deutsche Bank Securities Inc.; Goldman, Sachs & Co.; Morgan Stanley & Co. Inc.; Salomon Smith Barney Inc.; and U.S. Bancorp Piper Jaffray Inc. — consented, without admitting or denying the allegations.

The regulators alleged that the firms violated various rules by failing to preserve e-mails for at least three years, and by failing to establish, maintain and enforce a supervisory system to assure compliance with NASD and NYSE rules and the federal securities laws relating to retention of electronic communications.

The firms agreed to a penalty of a censure and a fine US$1.65 million per firm. Each firm agreed to inform each regulator, in writing, within 90 days that it has established systems and procedures reasonably designed to achieve compliance with the statute and rules relating to e-mail retention.