EXCLUSIVE U.S. SEC opens inquiry into Wall Street banks' staff communications -sources

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EXCLUSIVE U.S. SEC opens inquiry into Wall Street banks' staff communications -sources
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The U.S. Securities and Exchange Commission (SEC) has opened a broad inquiry into how Wall Street banks are keeping track of employees' digital communications, three people familiar with the matter told Reuters.

SEC enforcement staff contacted multiple banks in recent weeks to check whether they have been adequately documenting employees' work-related communications, such as text messages and emails, with a focus on their personal devices, said the people, who spoke on the condition of anonymity.

The SEC periodically conducts sweeps to quickly gather information on issues it suspects may be widespread. Sweeps can sometimes, although not necessarily, lead to formal probes. In the United States, there is no clear-cut legal basis on which an employer can demand to inspect employees' personal communications, while in other countries doing so may breach data protection statutes, the source said.

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