Tech

Asset managers on alert after ‘WhatsApp’ crackdown on banks

Published

2 years ago

Farwa

Demand for software to record, archive messaging on the rise.
Banks pay hundreds of millions of dollars in regulatory fines.
Continued remote working underscores risk of compliance missteps.

LONDON: Asset managers are tightening controls on personal communication tools such as WhatsApp as they join banks in trying to ensure employees play by the rules when they do business with clients remotely.

Regulators had already begun to clamp down on the use of unauthorised messaging tools to discuss potentially market-moving matters, but the issue gathered urgency when the pandemic forced more finance staff to work from home in 2020.

Most of the companies caught in communications and record-keeping probes by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been banks – which have collectively been fined or have set aside more than $1 billion to cover regulatory penalties.

But fund firms with billions of dollars in assets are also increasing their scrutiny of how staff and clients interact.

“It is the hottest topic in the industry right now,” said one deals banker, who declined to be named in keeping with his employer’s rules on speaking to the media.

Reuters reported last year the SEC was looking into whether Wall Street banks had adequately documented employees’ work-related communications, and JPMorgan was fined $200 million in December for “widespread” failures.

German asset manager DWS said last month it had set aside 12 million euros ($12 million) to cover potential U.S. fines linked to investigations into its employees’ use of unapproved devices and record-keeping requirements, joining a host of banks making similar provisions, including Bank of America, Morgan Stanley and Credit Suisse.

Sources at several other investment firms – described in the financial community as the ‘buy-side’ – including Amundi, AXA Investment Management, BNP Paribas Asset Management and JPMorgan Asset Management, told Reuters they have deployed tools to keep all communications between staff and clients compliant.

Spokespeople for the SEC and CFTC declined to comment on whether their investigations could extend beyond the banks, but industry sources expect authorities to cast their nets wider across the finance industry and even into government.

Last month Britain’s Information Commissioner’s Office (ICO), the country’s top data protection watchdog, called for a review of the use of WhatsApp, private emails and other messaging apps by government officials after an investigation found “inadequate data security” during the pandemic.

Good business for some

Regulations governing financial institutions have progressively been tightened since the global financial crisis of 2007-9 and companies have long recorded staff communications to and from office phones.

This practice is designed to deter and uncover infringements such as insider trading and “front-running,” or trading on information that is not yet public, as well as ensure best practices in terms of treatment of customers.

But with thousands of finance workers and their clientele still working remotely after decamping from company offices at the start of the pandemic, some sensitive conversations that should be recorded remain at risk of being inadvertently held over informal or unauthorised channels.

Brad Levy, CEO of business messaging software firm Symphony, said concerns about managing that risk had driven a surge in interest for software upgrades that make conversations on popular messaging tools including Meta Platforms’ WhatsApp recordable.

“Most believe the breadth of these investigations will go wider as they go deeper,” Levy said.

“Many market participants have retention and surveillance requirements so are likely to take a view, including being more proactive without being a direct target.”

He said Symphony’s user base has more than doubled since the pandemic to 600,000, spanning 1,000 financial institutions including JPMorgan and Goldman Sachs.

Symphony peer Movius also said its business lines specialising in making WhatsApp and other tools recordable have more than doubled in size in the space of a year, with sales to asset managers a growing component.

“Many on the buy-side have recognised that you can’t just rely on SMS and voice calls,” said Movius Chief Executive Ananth Siva, adding that the company was also seeking to work with other highly-regulated industries including healthcare.

Movius software integrates third-party communications tools such as email, Zoom, Microsoft Teams and WhatsApp into one system that can be recorded and archived as required, he said.

Amundi, AXA IM, BNPP AM and JPMorgan Asset Management all confirmed they had adopted Symphony software but declined to comment on the full breadth of services they used or when these had been rolled out.

Amundi and AXA IM both confirmed they used Symphony services for team communications, while AXA IM also said they used it for market information.

Amundi, BNPP AM and JP Morgan AM declined to comment on whether they thought regulators would seek to investigate record keeping at asset managers after enforcement actions against the banks were completed.

A spokesperson for BNPP AM said it had banned the use of WhatsApp for client communications due to compliance, legal and risk considerations including General Data Protection Regulation (GDPR).

Latest News

Pakistan’s first multi-mission satellite has started operational.

Published

22 hours ago

Farwa

The inaugural multi-mission satellite of Pakistan, PAKSAT MM1, has been successfully operationalized with the assistance of the Special Investment Facilitation Council (SIFC).

The operationalization of the satellite represents a significant milestone in the nation’s space and digital growth framework.

The success of PAKSAT-MM1 will revolutionize Pakistan’s communication infrastructure, benefiting multiple IT sectors.

The satellite will deliver services including television broadcasting, mobile telecommunications, community internet access, and tele-education to enhance local enterprises.

This satellite will enhance internet coverage in remote regions, advancing the government’s objective of Digital Pakistan.

Pakistan has ascended 14 positions in the United Nations E-Governance Development Index. The country currently ranks 136th overall, an improvement from 150th in 2022.

Pakistan’s historic lunar mission (ICUBE-Q) was launched on May 3 aboard China’s Chang’E6 from Hainan, China.

The iCube-Qamar satellite project is Pakistan’s inaugural lunar exploration initiative, constituting a key achievement in the nation’s space endeavors.

The satellite iCube-Q was conceived and created by the Institute of Space Technology (IST) in partnership with Shanghai University SJTU of China and Pakistan’s national space agency SUPARCO.

Latest News

In Pakistan, TikTok deleted over 30 million videos due to them breaking community norms.

Published

2 days ago

Farwa

In order to further explain the platform’s proactive approach to content management in Pakistan, TikTok has issued its Q2 2024 Community Guidelines Enforcement Report. The content and accounts that were terminated for breaking the platform’s community guidelines are transparently disclosed in this quarterly report.

As the platform continues to bolster its content moderation procedures to protect its varied community, the study indicates that over 30,709,744 videos were removed from TikTok in Pakistan during the most recent reporting period. Important discoveries reveal that 97% of these films were taken down in less than a day, and 99.5% of these movies were proactively removed before people reported them. These numbers demonstrate TikTok’s dedication to preventing harmful content from being posted and guaranteeing a safer platform for its Pakistani user base.

On TikTok, millions of videos are uploaded daily by over a billion users, and the platform is always improving and giving priority to automatic moderation technology. In Q2 2024, more than 178,827,465 videos were deleted from the platform. 144,430,133 of these were eliminated automatically, demonstrating the platform’s creative application of its detection technologies to instantly delete hazardous content.

With the help of this technological breakthrough, TikTok is able to expand its moderation efforts and keep its expanding worldwide community safe. At 98.2%, TikTok’s proactive detection rate makes it more effective than ever to remove hazardous content before users see it. Reiterating the precision and efficacy of TikTok’s content control algorithms, the data also shows a 50% decrease in the quantity of restored videos.

In order to provide a safe environment for its varied user base in Pakistan and around the world, TikTok is investing in state-of-the-art moderation technology while maintaining a top priority in transparency and platform safety.

Latest News

Huawei presents an advanced AI-capable cloud solution at GITEX 2024.

Published

3 days ago

Farwa

Huawei Cloud is showcasing its dedication to intelligent enhancements and cloud breakthroughs at GITEX 2024 in Dubai, emphasizing AI-driven, industry-specific solutions for areas such as government, banking, media, and e-commerce.

GITEX Global 2024 will take place at the Dubai World Trade Centre from October 14 to 18. Attend Huawei’s exhibits situated in B10 and B20 of Hall 22.

Alan Qi, President of Huawei Cloud Middle East and Central Asia, stated, “Huawei Cloud introduces global digital transformation best practices to the region through AI-native cloud services, including databases, big data, data governance, software development, and AI.” We collaborate with industry experts to develop solutions for government, electricity, banking, media, e-commerce, and retail, facilitating digital and intelligent transformation. Moreover, we link local industries with global corporations to promote innovation via peer exchanges and effective methods.

The company’s “Everything-as-a-Service” strategy matches with its objective of providing efficient, cloud-based solutions across several industries.

Huawei Cloud provides an Everything-as-a-Service strategy that encompasses fully digital, cloud-based, and AI-driven services, such as Infrastructure-as-a-Service, Technology-as-a-Service, and Expertise-as-a-Service.

During GITEX 2024, Huawei Cloud introduced solutions for five primary sectors: digital government, media and entertainment, Web3, e-commerce and retail, and telecoms.

The company unveiled advancements such as the enhanced Pangu Models 5.0 and the cloud-native development platform CodeArts, aimed at augmenting AI capabilities and optimizing software development efficiency.

Huawei will provide ICT training to 300,000 young individuals in Pakistan.

Moreover, Huawei Cloud will conduct the Huawei Cloud Summit UAE 2024 at the Conrad Hotel in Dubai on October 15.

The event, themed “Leap to Intelligence with a Better Cloud,” will include product releases, collaborative solution launches with ecosystem partners, and announcements regarding talent development initiatives.

The Huawei Cloud Partner and Ecosystem Forum is scheduled for October 16 to explore policies and strategies for partner and ecosystem sales, products, operations, and marketing.