Moelis reaches settlement pact with SEC, will recognize $10M expense

In a regulatory filing, Moelis said it has reached an agreement on an Offer of Settlement with the U.S. Securities and Exchange Commission to resolve an administrative cease-and-desist proceeding regarding our practices relating to recordkeeping of business communications on messaging applications. Moelis & Company LLC agreed to be censured, pay a civil monetary penalty of $10M and comply with certain undertakings, including retaining a compliance consultant, related to retention of electronic communications as enumerated in the Settlement. As a result, the company recognized an expense of $10M for the nine months ended September 30, 2023, in other income and expenses in the condensed consolidated statements of operations.