The US Securities and Exchange Commission (SEC) has taken a bold step to enhance security and record-keeping by blocking third-party messaging apps and texts from employees’ work mobile phones. This move aligns the SEC’s practices with the standards it enforces for the financial industry, following a series of fines imposed on firms for failing to adequately record work-related communications.
The decision to block disappearing-messaging apps like Signal and WhatsApp aims to reduce security vulnerabilities at the agency, especially after a recent compromise of one of its social media accounts. The SEC’s crackdown on improper conduct involving mobile communications has prompted Wall Street to revamp how employees communicate on business matters using mobile phones.
Financial firms are required to monitor and save communications to prevent misconduct, making it easier for regulators to investigate wrongdoing. The Commodity Futures Trading Commission is reportedly considering similar measures to enhance record-keeping and security.
The regulatory crackdown has resulted in hefty fines for Wall Street giants and smaller players, benefiting software and compliance providers offering solutions to capture ephemeral communications. However, some industry members are unhappy with the stricter policies, with firms privately reprimanding or disciplining staff who used unauthorized platforms.
The SEC’s cybersecurity practices have also come under scrutiny, with a recent incident involving a fake post on a Bitcoin exchange-traded fund approval. This highlights the importance of robust security measures, even for regulatory bodies like the SEC.