Bank of America Corp. is facing a financial penalty as part of an investigation by regulators into the unauthorized use of personal devices, reports Advisor Hub.
The Securities and Exchange Commission has been conducting a probe of various financial institutions regarding their record preservation practices. Financial firms are required to monitor and save employee communications involving their business and customers, but the SEC is looking into whether firms have adequately monitored employees’ work-related communications including text messages and emails while they worked remotely during the COVID-19 pandemic.
According to the report, Bank of America is expected to pay a fine of $200 million over the matter. It would follow another fine of $225 million for alleged unfair and abusive acts by the firm regarding the disbursement of public benefit payments during the pandemic.
In its second quarter results, Bank of America listed a total of $425 million in expenses for what it labeled “certain regulatory matters”.
Among other firms hit with similar penalties was JP Morgan Chase & Co., which was fined $200 million by the SEC and Commodity Futures Trading Commission for failing to preserve work-related communication sent by employees via messaging services such as WhatsApp, personal mobile devices or personal email addresses.
In addition, Morgan Stanley disclosed that it faces a $200 million penalty over a regulatory matter involving the use of unapproved personal devices and the firm’s record-keeping requirements. Citigroup is also reported to be setting aside funds for a similar fine.
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