This 153-Year Old Company Imposes Rs 8 Crore Penalty On Employees For Using Whatsapp!


Shreya Bose

Shreya Bose

Jan 28, 2023


Morgan Stanley has imposed financial penalties on employees who used messaging platforms such as WhatsApp for company business.

How fines are determined

This 153-Year Old Company Imposes Rs 8 Crore Penalty On Employees For Using Whatsapp!

The penalties ranged from several thousand dollars for some staff to more than $1 million per employee.

The penalties are based on a points system which takes into account factors such as the number of messages sent, the banker’s seniority, and whether they received prior warnings.

Depending on the size of the penalty, the funds have either been deducted from previous bonuses or will be docked from future pay.

Heavy price to pay

This development comes after a scandal that damaged the group’s reputation and as a result had to pay $200 million in regulatory fines to the U.S. Securities and Exchange Commission in 2021.

They had to pay up in order to resolve probes into employee communications on messaging platforms that had not been approved by the company.

The latest news comes amid a wide-ranging crackdown on Wall Street by US regulators over the use of personal phones and unapproved apps.

Keep track of employees using personal device for business

The Financial Industry Regulatory Authority requires broker-dealers to keep records of all business-related communications.

The SEC has been investigating whether lenders have been keeping a track of employees’ digital communications.

In September it had fined 16 financial firms, including major global banks, a combined $1.8 billion due to staff discussing deals and trades on their personal devices.

The fallout

Other banks such as Credit Suisse and HSBC have fired bankers embroiled in the scandal too.

The probe has since broadened to go beyond broker-dealers to investment funds and advisers.

Some banks that were fined have told employees that future pay and bonuses will be docked for those found to have used unauthorized communication channels.

Financial firms are also scouring employees’ phones and personal computers in a widespread effort to show the regulators that they are punishing breaches of communications policies.

Lesson seemingly learned

Morgan Stanley now conducts training sessions explaining scenarios when they should shift conversations on personal devices to official channels such as their work email.

This can include even seemingly harmless instances where colleagues are exchanging messages about the time or location of a meeting.

This is because these apparently trivial messages often lead to more material discussions.

Many banks now require employees to take a picture of work-related messages on personal devices and forward them to the compliance departments so that they can be preserved.


Shreya Bose
Shreya Bose
  • 194 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  Contents1 iOS 16.2 Update Release Date2 iOS 16.2 Update Big Features3 1. Always On Display Mods4 2. 5G Support in […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online