The financial services industry has faced a number of compliance challenges in recent years, stemming from not having the supervisory and control systems in place to prevent misconduct and conflicts of interest. First, revelations about the manipulation of the London Interbank Offered Rate (Libor) and more recently, those of foreign exchange (Forex) rates, has renewed regulatory focus and scrutiny of the way electronic communications are being used within regulated firms.
With employees of regulated firms now accessing and using multiple electronic communication platforms within their workday, and with new communication platforms being launched, the electronic communications landscape has never looked more complex. In addition, these electronic communications allow employees to send and receive information, in real-time, both within the company, as well as to peers working in other organizations. This creates added complexity for firms needing to manage and control the flow of information for the purposes of managing confidentiality and conflicts of interest.
In recent years, regulators have refreshed or brought online new guidance and regulations around the compliant use of electronic communications. Following the investigations into Libor and Forex manipulation, regulators and law courts have demonstrated an appetite for enforcement in the form of expensive fines and criminal charges. For regulated firms, there has never been a more urgent requirement to re-assess if the electronic communications in use within their organizations are being appropriately supervised and controlled.
Interested in learning more?
Download “Lessons from the Libor Scandal: Why Electronic Communications Require Better Management & Control” here for:
- How the Libor Story Unfolded
- The Role of Real-time Messaging and its Future
- Electronic Communications Back in the Spotlight with Forex Manipulation
- Understanding the Regulatory Requirements
- 5 Ways Regulated Firms Can Ensure the Compliant Use of Electronic Communications
You may also be interested in reading “5 Ways Regulated Firms Can Ensure the Compliant Use of Electronic Communications“ for more information.
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