Blackstone Inc. and BlackRock Inc. are among the money managers facing scrutiny in a US regulatory crackdown on Wall Streeters’ once-prolific use of unauthorized messaging platforms.
(Bloomberg) — Blackstone Inc. and BlackRock Inc. are among the money managers facing scrutiny in a US regulatory crackdown on Wall Streeters’ once-prolific use of unauthorized messaging platforms.
Blackstone was contacted by the Securities and Exchange Commission in October for information on retention of electronic business communications and text messages, the firm said in a filing on Friday.
BlackRock said in a separate filing on Friday that it is responding to requests from the SEC in connection with an industry-wide investigation related to certain types of electronic communications.
Both firms said they are cooperating with the SEC’s inquiries.
The disclosure adds the private equity giant and the world’s largest asset manager to a list of marquee firms — including Apollo Global Management Inc., Carlyle Group Inc. and KKR & Co. — that have publicly acknowledged inquiries from the SEC after the watchdog punished banks for their employees’ unauthorized use of platforms such as WhatsApp.
The regulatory sweep has pressured Wall Street to stop using disappearing-message apps and personal devices for business. Preliminary inquiries don’t necessarily mean the agency will ever levy a complaint.
Financial firms are subject to a variety of rules for monitoring and archiving business communications, which authorities have said play an important role when investigating suspected misconduct. Investment advisers and money managers are required to retain records related to advice they provide. The SEC’s push sets up a fight with firms and trade groups who argue the agency is overreaching.
(Updates with BlackRock disclosure of SEC cooperation)
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