The U.K. Financial Conduct Authority (FCA) is currently investigating former Credit Suisse employees for allegedly sharing confidential information through the WhatsApp messaging platform.
The investigation involves around 100 members of the London-based research team of the Swiss bank, which was recently acquired by UBS.
The FCA has previously taken action against financial professionals for improper use of messaging applications. In 2017, the regulator fined an investment banker for sharing a client's confidential information via a messaging app.
The FCA has been increasingly vigilant in monitoring communications within financial institutions, especially since it mandated that companies prevent employees from using private devices for communications that cannot be recorded or monitored.
The investigation into Credit Suisse also includes allegations of unauthorized recordings of conversations with executives from publicly listed companies. These recordings raise concerns about potential breaches of selective disclosure rules.
The FCA's investigation is part of a broader trend of increasing scrutiny on financial institutions regarding their communication practices. UBS, which has taken over Credit Suisse, has also faced penalties for similar infractions.
The FCA's requirements emphasize the necessity for financial firms to implement robust systems to monitor employee communications. The use of pop-up messaging features, which automatically delete communications after a specified period, is also under investigation.
The potential consequences for Credit Suisse and its employees include regulatory penalties, reputational damage, and increased scrutiny from regulatory bodies.
The ongoing scrutiny of communication practices within financial institutions highlights the importance of compliance in an increasingly digital world.
The outcome of the FCA's investigation into Credit Suisse could have far-reaching consequences for the bank and the broader financial industry.