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SEC Enquiring Use of Personal Digital Devices by Financial Professionals of Wall Street Banks

The US Securities and Exchange Commission is looking into the use of personal Digital Devices of financial professionals of Wall Street banks. The SEC officials contacted multiple banks to check whether the banks are ensuring safe use of personal Digital Devices and documenting the work related communications like mails and text messages. The SEC mainly focused on personal Digital Devices to avoid anonymities. The SEC is looking into the matter as Wall Street Banks were unable to manage the documentation and records during the work from home pandemic era.

SEC periodically conducts the ‘sweep’ to gather information on issues that are widely spread. Sweeps do not always result into formal probes. Sweep is a stem of SEC that conducts enquiries of financial institutions. The SEC and Financial Industry Regulatory Authority require brokers or dealers to keep track of the records of finance related business communications.

The banks need to comply with the requirements without violating privacy of the employees.Currently, in US there is no regulatory framework designed on which basis employers can demand to inspect their personal Digital Devices to check the business related information. However, if employers in other countries do so leads to breach. Thus, many financial institutions ban the use of personal for business communications.

In the same context, Morgan Stanley fired two top executives for using personal Digital Devices and sources for business communication. The SEC in the case of Wall Street Banks is looking into the matter as Wall Street Banks were unable to manage the documentation and records during the work from home pandemic era.

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