Take one look at your phone and count how many different message apps you have. WhatsApp, Facebook Messenger, Snapchat, Telegram, Signal, iMessage. Those are just some of the most popular messaging applications available right now and chances are you have more than one of those on your phone right now. If you are in the financial services industry, beware. Last week it was reported that the U.S. Securities and Exchange Commission’s recent investigation of broker-dealers for violation of regulations relating to use of personal messaging devices, such as WhatsApp—which resulted in over $1.8 billion in fines to 16 financial institutions—has broadened to include investment funds and advisers.
According to individuals familiar with the inquiry, the SEC has issued document requests and preservation notices to a number of investment funds and advisers relating to their policies regarding employee use of personal devices and messaging platforms.
‘Enforcement 40’ for 2020
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