The article emphasizes that regulators are “concerned that banks and other financial institutions may avoid proper regulation by using such methods.” The SEC has been sued by many companies in this regard. and US corporations.
Controversy over banks’ use of messaging services such as WhatsApp resurfaced last week when media reports suggested Morgan Stanley was punishing individual banks for conducting corporate business through the medium. The information was revealed in a recent report by a Financial Times related to a survey of regulators who paid $1.8 billion each last year from 11 Wall Street firms.
This article has contacted the Wall Street firm for comment and may change over time. It had not responded at press time.
Morgan Stanley is either refunding past bonuses or discounting future bonuses. Penalties range from a few thousand dollars to more than $1 million per employee
FT he said.
The saga underscores how regulators worry that banks and other financial institutions could avoid proper regulation by using such methods, or put their customers at risk with cybersecurity, or both.
In September of last year, the Securities and Exchange Commission announced charges against 15 brokers and one financial advisor for “long-term failures by companies and their employees to store and maintain electronic information.”
The problem, however, is that most customers digest information through social media and similar channels. The world of business relations is also being transformed by what is sometimes referred to as “IR3.0.” The term takes an IR approach and includes institutional and non-institutional networks, making effective use of content, not just research. It reaches out to multiple platforms and channels such as LinkedIn, Google, Twitter and smart use of digital marketing strategies.
“The financial service is facing increasing problems from regulators, and the violation of the unregulated use of e-comms across Wall Street worth 2 billion dollars. Morgan Stanley alone faced $ 200 million in fines for the lack of regulation of transmission platforms messages on the Internet,” Matt Smith, CEO and co-founder of technology tracking and data analytics firm SteelEye, said in an email to the news agency. Employees, most companies have not yet managed digital communication channels. Only 15 percent manage WhatsApp, and even fewer monitor Slack (9 percent) or Signal (3 percent). law enforcement professionals.”
Morgan Stanley’s press release said that the penalties for employees are based on a policy that takes into account how many messages people have sent, the size of the bank, and whether they received warnings before they started.
“One way to avoid further scrutiny from the SEC is for companies to build a strong relationship with regulators by being transparent and sharing non-financial risks before they become a problem. So it’s no surprise that banks are now imposing penalties to keep them from harming them. “Regulators are investing in technology that allows them to identify signals. about errors correctly, so banks must intervene quickly and stay ahead of the regulator in looking ahead. Companies can no longer rely on data silos and legacy systems where the tools that are most useful for analytics are readily available. ”
