Oversight of employee communications falling short, case shows (Law360)

The inability of a large firm to preserve and oversee employee business discussions on personal devices resulted in regulatory fines – and is now serving as a warning for the rest of the industry. The case against JP Morgan Chase & Co. that culminated in a $200 million combined total fine (SEC and CFTC) showed the firm failed to follow it’s record-keeping and communication policies. Since the use of text messaging and phone apps for business related communications are now commonplace, explains FrontLine’s Founder and President Amy Lynch, firms need to have appropriate systems in place to capture and preserve them. Ms. Lynch further states that these systems need to fit the communication methods of the workforce, and have taken on even greater significance within the COVID-19 work environment. See Law360 (subscription required), “$200M JPMorgan Fine Signals Broader Regulatory Crackdown“