The funds were recovered from previous bonuses or will be deducted from future payments, according to a person with knowledge of the matter, who asked not to be named because the information has not been made public.
Morgan Stanley is the latest bank to have required its staff to shoulder some of the burden of an unprecedented regulatory investigation, after it was discovered that unapproved messaging platforms were being widely used to conduct business. Financial companies are required to scrupulously monitor communications related to their business to prevent misconduct.
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The individual sanctions in Morgan Stanley They range from a few thousand dollars to more than $1 million, based on a points system that considers factors such as seniority, the number of messages sent and whether they received prior warnings, according to the Financial Times, who was the first to report the news.
The bank is now providing training to employees on scenarios in which they need to switch conversations from personal devices to official platforms such as corporate email, the bank said. ft.
Last year, Morgan Stanley agreed to pay $200 million in penalties to the Securities and Exchange Commission (SEC) of the United States and the Commodity Futures Trading Commission (CFTC). A dozen banks, including Barclays Plc, Goldman Sachs Group Inc. and UBS Group AGhave paid similar fines, for a total amounting to US$ 2,000 million.
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The research has also sparked some broader changes. The board of directors of Deutsche Bank AG it accepted a €75,000 ($81,200) reduction in its 2021 bonuses and the German lender introduced a new app that allows messages to be retrieved from company phones.
JPMorgan Chase & Co. cut the 2021 salary package of the director of asset and wealth management, Mary Erdoes, “in connection with internal, SEC, and CFTC investigations into the company’s compliance with certain record retention requirements”the company revealed in a 2022 presentation.
Source: Gestion
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