LONDON: As they join banks in trying to make sure staff follow the laws when conducting business with clients remotely, asset managers are increasing controls on personal communication apps like WhatsApp.
Regulators had previously started to crack down on using unauthorised messaging services to discuss potentially market-moving issues, but the situation became more urgent in 2020 when the pandemic made it necessary for more finance personnel to work remotely.
Banks have made up the majority of the companies investigated by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for communications and record-keeping violations; these institutions have collectively paid fines or set aside more than $1 billion to cover regulatory penalties.
