Connect with us

Tech

Asset managers on alert after ‘WhatsApp’ crackdown on banks

Published

on

  • Demand for software to record, archive messaging on the rise.
  • Banks pay hundreds of millions of dollars in regulatory fines.
  • Continued remote working underscores risk of compliance missteps.

LONDON: Asset managers are tightening controls on personal communication tools such as WhatsApp as they join banks in trying to ensure employees play by the rules when they do business with clients remotely.

Regulators had already begun to clamp down on the use of unauthorised messaging tools to discuss potentially market-moving matters, but the issue gathered urgency when the pandemic forced more finance staff to work from home in 2020.

Most of the companies caught in communications and record-keeping probes by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been banks – which have collectively been fined or have set aside more than $1 billion to cover regulatory penalties.

But fund firms with billions of dollars in assets are also increasing their scrutiny of how staff and clients interact.

“It is the hottest topic in the industry right now,” said one deals banker, who declined to be named in keeping with his employer’s rules on speaking to the media.

Reuters reported last year the SEC was looking into whether Wall Street banks had adequately documented employees’ work-related communications, and JPMorgan was fined $200 million in December for “widespread” failures.

German asset manager DWS said last month it had set aside 12 million euros ($12 million) to cover potential U.S. fines linked to investigations into its employees’ use of unapproved devices and record-keeping requirements, joining a host of banks making similar provisions, including Bank of America, Morgan Stanley and Credit Suisse.

Sources at several other investment firms – described in the financial community as the ‘buy-side’ – including Amundi, AXA Investment Management, BNP Paribas Asset Management and JPMorgan Asset Management, told Reuters they have deployed tools to keep all communications between staff and clients compliant.

Spokespeople for the SEC and CFTC declined to comment on whether their investigations could extend beyond the banks, but industry sources expect authorities to cast their nets wider across the finance industry and even into government.

Last month Britain’s Information Commissioner’s Office (ICO), the country’s top data protection watchdog, called for a review of the use of WhatsApp, private emails and other messaging apps by government officials after an investigation found “inadequate data security” during the pandemic.

Good business for some

Regulations governing financial institutions have progressively been tightened since the global financial crisis of 2007-9 and companies have long recorded staff communications to and from office phones.

This practice is designed to deter and uncover infringements such as insider trading and “front-running,” or trading on information that is not yet public, as well as ensure best practices in terms of treatment of customers.

But with thousands of finance workers and their clientele still working remotely after decamping from company offices at the start of the pandemic, some sensitive conversations that should be recorded remain at risk of being inadvertently held over informal or unauthorised channels.

Brad Levy, CEO of business messaging software firm Symphony, said concerns about managing that risk had driven a surge in interest for software upgrades that make conversations on popular messaging tools including Meta Platforms’ WhatsApp recordable.

“Most believe the breadth of these investigations will go wider as they go deeper,” Levy said.

“Many market participants have retention and surveillance requirements so are likely to take a view, including being more proactive without being a direct target.”

He said Symphony’s user base has more than doubled since the pandemic to 600,000, spanning 1,000 financial institutions including JPMorgan and Goldman Sachs.

Symphony peer Movius also said its business lines specialising in making WhatsApp and other tools recordable have more than doubled in size in the space of a year, with sales to asset managers a growing component.

“Many on the buy-side have recognised that you can’t just rely on SMS and voice calls,” said Movius Chief Executive Ananth Siva, adding that the company was also seeking to work with other highly-regulated industries including healthcare.

Movius software integrates third-party communications tools such as email, Zoom, Microsoft Teams and WhatsApp into one system that can be recorded and archived as required, he said.

Amundi, AXA IM, BNPP AM and JPMorgan Asset Management all confirmed they had adopted Symphony software but declined to comment on the full breadth of services they used or when these had been rolled out.

Amundi and AXA IM both confirmed they used Symphony services for team communications, while AXA IM also said they used it for market information.

Amundi, BNPP AM and JP Morgan AM declined to comment on whether they thought regulators would seek to investigate record keeping at asset managers after enforcement actions against the banks were completed.

A spokesperson for BNPP AM said it had banned the use of WhatsApp for client communications due to compliance, legal and risk considerations including General Data Protection Regulation (GDPR).

Latest News

TikTok offers a special in-app experience to commemorate the release of Jimin’s second solo album, MUSE, by BTS.

Published

on

By

Calibre fans everywhere get the chance to interact with only-available content, take part in challenges, and get temporary rewards by visiting the #Jimin_Who hub. To find a time-limited, exclusive profile frame, search for relevant terms like “Jimin” and “BTS.” You’ll be provided with difficulties. Moreover, the hub offers high-calibre content produced by Jimin, such as his solo and collaborative works, Fan Spotlight, which highlights exceptional ARMY members and their works, and an immersive event honouring Jimin’s second album, MUSE.

TikTok is committed to enabling fans and artists to interact and create, as this programme demonstrates. The TikTok community worldwide is expected to find resonance in this experience, as BTS is one of the most popular accounts and #kpop is one of the fastest-growing genres on the platform, producing 59.8 million posts and 602 billion video views.

BTS (@bts_official_bighit) broke numerous records throughout their more than ten-year tenure, becoming the fourth-largest artist account on TikTok and cementing their status as pop icons of the twenty-first century.

The group’s hashtags, #bts and #bts_official_bighit, are part of 94.1 million creator videos and 33.4 million videos, respectively, and have over 65.5 million followers and 1.4 billion likes. Because of his solo work, Jimin has become an international phenomenon, inspiring millions of creator videos and views.

In over 22.9 million creator videos, hashtags pertaining to #jimin have appeared. The group’s TikTok dance video, which was viewed over 36.2 million times and received over 8.6 million likes, was inspired by Jimin’s #1 song, “Like Crazy,” which he released last year after his debut solo album FACE. The song inspired over 300,000 creator videos. The MUSE pre-release single “Smeraldo Garden Marching Band (feat. Loco)” has received 2.5 million likes and 11 million views on Jimin’s recent exclusive behind-the-scenes video.

Continue Reading

Latest News

63,000 Instagram accounts are deleted by Meta

Published

on

By

The “Yahoo boys,” a group of Nigerian internet scammers, are well-known for their elaborate schemes, which include posing as needy individuals or promising phenomenal returns on investments from prominent Nigerian figures.

63,000 Instagram profiles, according to a statement by Meta, which also mentioned that 7,200 Facebook pages, groups, and accounts that offered advice on con artistry had been deleted.

The organisation also eliminated a smaller, more tightly-knit network of about 2,500 computers that belonged to a collective of about 20 people.

The prospect of compromising photos—fake or real—being released is used in sexual extortion, or “sextortion,” to coerce victims into paying to halt the abuse.

Meta notified the scammers’ attempts to the U.S. National Centre for Missing and Exploited Children, as most of the scammers’ attempts were unsuccessful and largely targeted adults, but there were also attempts made against kids.

The disruption of these networks was not new, according to Meta officials, who also disclosed the current operation in an effort to “raise awareness.”

Governments, particularly lawmakers in the US, where Meta is headquartered, have increased pressure on the social media behemoth to address allegations that its executives have disregarded data indicating that its services are harmful to children. As a result, the company has been under defensive fire in recent years.

One American senator charged Mark Zuckerberg, the CEO of Meta, and other prominent figures in the social media space earlier this year, saying they had “blood on their hands” for not doing enough to shield young people from the growing risks of sexual predatory content on their platforms.

Additionally, in an effort to raise awareness of these risks, the U.S. Surgeon General has advocated for social media apps to have a warning label attached.

A part of the national penal code that dealt with fraud ineffectively gave rise to the term “419 scams” for Nigerian con artists.

Online frauds have increased in number, with individuals responsible operating from wealthy neighbourhoods, college dorms, or impoverished suburban areas while the nation of more than 200 million people experiences increasing economic woes.

A few users, according to Meta, were giving advice on how to pull off scams.

It stated, “Among their attempts were links to photo collections that they could use to create fictitious accounts, as well as offers to sell scripts and instructions to deceive people with.”

Continue Reading

Latest News

Google abandons its plans to do rid of cookies in Chrome

Published

on

By

The significant change in course comes as a result of worries expressed by advertisers, who provide the majority of the company’s revenue, that their capacity to gather data for customised advertisements will be restricted due to the removal of cookies from the most widely used browser in the world, leaving them reliant on Google’s user databases.

Due to worries that Google’s proposal would stifle competition in the digital advertising market, the UK’s Competition and Markets Authority has also carefully examined the proposal.

“Rather than discontinuing third-party cookies, we would launch a fresh experience in Chrome that empowers individuals to make a knowledgeable decision that is applicable to all of their online browsing, and they could modify that decision whenever they choose,” stated Anthony Chavez, vice president of the Privacy Sandbox project, which is supported by Google, in a blog post.

A major objective of the Privacy Sandbox project, which was started in 2019 by Alphabet (GOOGL.O), opens new tab unit, is to phase out third-party cookies while simultaneously improving online privacy and boosting digital enterprises.

Though they can potentially be used for unauthorised monitoring, cookies are information packets that websites and advertisers use to identify specific online users and follow their browsing patterns.

Within the European Union, publishers are required to obtain explicit agreement from users before storing cookies, as per the General Data Protection Regulation (GDPR). Cookie deletion is another feature that most popular browsers offer.

While continuing to fund the Privacy Sandbox programme, Chavez stated that Google was collaborating on the new strategy with publishers, privacy organisations, and regulators like the UK’s Information Commissioner’s Office and CMA.

Many responded differently to the announcement.

Analyst Evelyn Mitchell-Wolf of eMarketer stated in a statement, “Advertising stakeholders won’t have to prepare to quit third-party cookies cold turkey.”

One example of how cookies can hurt consumers is when they display predatory advertisements that target specific demographics, according to Lena Cohen, a staff technologist at the Electronic Frontier Foundation. According to Cohen, Google’s choice to keep accepting third-party cookies is a direct result of their advertising-driven business model, even though other major browsers have been banning them for years.

Continue Reading

Trending