SEC Intensifies WhatsApp Probe
From the desk of Jim Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) has heightened its investigation into Wall Street's utilization of private messaging applications by gathering thousands of staff messages from over a dozen major investment companies.
Previously, the SEC instructed these companies to internally review messages as part of its inquiry into using unauthorized messaging apps such as WhatsApp and Signal for work-related discussions.
The SEC's investigations have focused on specific employees, including senior executives. Executives surrendered their personal phones and devices to their employers or legal representatives for message retrieval, and the SEC has received business-related messages as a result. According to DIWire.com, this approach differs from previous broker-dealer probes, where the SEC asked companies to review staff messages and report work-related discussions, with SEC staff reviewing only a sample of messages.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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