UK regulator investigating Credit Suisse employees for sharing confidential information on WhatsApp

From Investing.com: 2024-12-06 11:21:35

The UK’s Financial Conduct Authority is investigating claims that former Credit Suisse employees shared confidential information via WhatsApp. The FCA is reviewing the conduct of several staff members in its London research unit from mid-2022 to early 2023. UBS, which rescued Credit Suisse, denies knowledge of an FCA investigation.

The FCA has been gathering information since February 2023 and is considering potential action. UBS has rules around electronic communications and gives analysts work phones. The regulator can open an investigation, levy fines, and ban individuals from the industry. The UK regulator has requested details from banks about staff breaching messaging app policies.

Allegations include staff sharing price-sensitive information on WhatsApp about the companies they covered. The FCA requires firms to prevent relevant communications on privately-owned devices. Some employees allegedly used “disappearing messages” on WhatsApp in early 2023. The FCA is also reviewing instances of recordings made without consent from senior executives of listed companies.

The recordings were shared in a WhatsApp chat used by Credit Suisse analysts for work. Executives made market-sensitive comments during closed periods leading up to financial results. Company managers are prohibited from sharing information that could give insight on finances before reporting earnings. Regulators may be reviewing the conduct of the executive who disclosed the sensitive information.



Read more at Investing.com: Exclusive-WhatsApp use by Credit Suisse staff scrutinised by UK regulator, documents show By Reuters