Piper Sandler & Co. Review | Regulatory Sanctions and Investor Concerns

Piper Sandler & Co. Review: FINRA Sanctions, Recordkeeping Failures, and Investor Concerns

The securities fraud attorneys at The White Law Group are reviewing regulatory actions and compliance issues involving Piper Sandler & Co., a registered broker-dealer operating under Piper Sandler Companies (NYSE: PIPR).

Between 2023 and 2025, Piper Sandler has faced multiple regulatory settlements and legal proceedings involving recordkeeping violations, reporting deficiencies, analyst research oversight, and internal governance issues.

Recent Regulatory and Legal Actions

CFTC Recordkeeping Violations (September 2024)

In September 2024, the Commodity Futures Trading Commission ordered Piper Sandler to pay a $2 million civil penalty for recordkeeping failures.

According to the CFTC, the firm:

• Failed to preserve required business communications

• Allowed personnel to use unapproved, off-channel communications, including personal text messages

• Lacked adequate supervisory controls to ensure compliance

The violations reportedly dated back to at least 2019, suggesting firm-wide compliance weaknesses rather than isolated misconduct.

SEC Recordkeeping Settlement (August 2024)

In August 2024, Piper Sandler reached a separate settlement with the U.S. Securities and Exchange Commission involving widespread recordkeeping lapses.

The SEC alleged that employees routinely used non-approved communication platforms without proper retention or monitoring. Piper Sandler agreed to pay a multi-million-dollar penalty and adopt remedial compliance measures.

FINRA Reporting Deficiencies (November 2025)

In November 2025, Piper Sandler settled with Financial Industry Regulatory Authority for $95,000 over alleged reporting deficiencies.

FINRA alleged failures related to regulatory reporting obligations—an issue that can impair regulators’ ability to detect misconduct and protect investors.

Analyst Research Settlement Challenge (2025)

In June 2025, Piper Sandler and Stifel Financial petitioned a federal court to lift restrictions stemming from the 2003–2004 Global Research Analyst Settlement with the SEC.

The firms argued that the ongoing oversight requirements were burdensome, outdated, and anti-competitive. As of 2026, the litigation remains ongoing, highlighting the long-term regulatory consequences of analyst-research enforcement actions.

Employment and Trade Secret Litigation

Piper Sandler has also been involved in employment-related disputes, including:

• A 2023 trade secrets lawsuit against a former employee

• Additional employment and discrimination claims

While not all employment litigation directly impacts customers, such disputes can reflect broader internal governance and supervisory challenges.

Piper Sandler Merger Background

Piper Sandler & Co. was formed following the January 2020 merger between Piper Jaffray Companies and Sandler O’Neill + Partners, L.P.

Merger Highlights:

• Combined Entity: Piper Sandler Companies

• Broker-Dealer: Piper Sandler & Co.

• Transaction Value: Approximately $485 million

• Strategic Focus: Financial services investment banking, equity research, and capital markets

Large mergers can create integration and supervision challenges, particularly with respect to recordkeeping, reporting systems, and compliance culture.

Why Broker Supervision Matters

Broker-dealers are required to maintain robust supervisory systems designed to ensure compliance with federal securities laws and FINRA rules. When supervision breaks down, the consequences can include:

• Failure to detect unsuitable investment recommendations

• Inadequate monitoring of broker communications

• Incomplete or inaccurate regulatory reporting

• Reduced transparency for investors and regulators

Recordkeeping and reporting failures are not merely technical violations—they can directly affect an investor’s ability to reconstruct what happened, identify misconduct, and pursue recovery.

FINRA Arbitration and Investor Recovery Options

Investors who suffered losses while working with Piper Sandler may be able to pursue claims through FINRA arbitration, including allegations involving:

• Failure to supervise registered representatives

• Misrepresentations or omissions

• Unsuitable investment recommendations

• Compliance and recordkeeping violations

FINRA arbitration is often the most effective forum for resolving disputes between investors and broker-dealers.

Speak With a Securities Attorney

If you invested through Piper Sandler & Co. and experienced losses, you may have legal options. The White Law Group represents investors nationwide in FINRA arbitration matters.

 Call 888-637-5510 for a free, confidential consultation.