The use of WhatsApp and other messaging apps by some of the world’s biggest private equity firms is being investigated by the US Securities & Exchange Commission, according to a report by Pensions & Investments online.
The use of WhatsApp and other messaging apps by some of the world’s biggest private equity firms is being investigated by the US Securities & Exchange Commission (SEC), according to a report by Pensions & Investments online.
The report cites regulatory fillings as revealing that Apollo Global Management, Carlyle Group and KKR & Co have all received letters from the SEC about the use of electronic messaging.
Financial firm are under a legal obligation to monitor all business communications to protect against improper conduct and retain records related to the provision of investment advice.
Use of WhatsApp, Signal, Telegram and other chat apps increased along with a rise in home-working during the pandemic. Some feature functions to make messages disappear automatically, potentially putting users in violation of existing SEC regulations.
The SEC has sent letters to dozens of investment firms in recent weeks but receiving a request for information doesn’t imply wrongdoing.
