As federal regulators continue their investigation into the use of unauthorized messaging platforms at major investment banks, UBS AG has indicated that it is part of the probe.
According to a report in AdvisorHub, the Swiss bank addressed the matter in its latest earnings report, saying that it is cooperating with the Securities and Exchange Commission and the Commodity Futures Trading Commission. The agencies are investigating whether banks are adequately monitoring their employees’ use of personal devices or messaging services for work-related communication while they have worked remotely during the pandemic. Financial firms are required to monitor and save employee communications involving their business and customers.
UBS said its cooperation with the probe involves “compliance with records preservation requirements relating to business communications sent over unapproved electronic messaging channels.”
UBS is the latest company to be scrutinized as part of the investigation. Last month, we reported that Bank of America is expected to pay a fine of $200 million over the matter.
JP Morgan Chase & Co. was also fined $200 million by the SEC and CFTC for failing to preserve work-related communication sent by employees through unapproved personal devices, while Morgan Stanley and Citigroup are facing similar penalties.
The lawyers at Hyman Cotter PC have extensive experience representing companies both large and small, as well as employees, directors, officers and shareholders, in complex commercial litigation matters pending in federal and state courts nationwide and in arbitrations before various dispute resolution forums. Our attorneys have over 55 years of collective experience litigating matters. Please contact us at 312-291-4600 for more information about our securities and commercial litigation practice.
