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HSBC has reinforced its communication protocols for employees, refining acceptable modes of interaction. So, what does that mean for staff moving forward?
Here’s everything you need to know about the HSBC work phone text ban.
What Is The Text Ban?
Per Bloomberg, the pivotal decision came down at the height of Q4 and was implemented to curtail text messaging on corporate phones as part of a continuous initiative to uphold compliance with regulatory obligations.
“Banks use a wide range of approved channels to communicate in compliance with regulatory obligations,” a spokesperson for HSBC told the news outlet. “HSBC, like many other banks, reviews and adjusts functionality on its corporate devices as needed.”
This practice certainly isn’t exclusive to HSBC — as banking institutions often update their protocols to adjust to ever-evolving regulatory requirements.
However, reports indicate the measure comes on the heels of the company’s entanglement with the FTC, stemming from a failure to assess unauthorized messaging app usage — such as WhatsApp — resulting in record-keeping infractions.
Why Has HSBC Implemented A Text Ban?
HR Dive elaborates on the consequences, noting fines of $30 million from the Commodity Futures Trading Commission and $15 million from the Securities and Exchange Commission. In fact, HSBC joins an expanding roster of financial institutions, such as Bank of America, Citi, Goldman Sachs, and Morgan Stanley, which collectively paid $1.8 billion last fall to address violations associated with record-keeping issues, as reported by HR Dive.
“A small number of workers will still be allowed to text from their work phones, where texts are archived,” wrote Bloomberg. “Personal devices are not included in the ban.”
“It’s time for Wall Street to stop waiting for an enforcement action before it changes its practices,” CFTC Commissioner Christy Goldsmith Romero said at the time. “Change can only happen if the banks’ C-suite establishes a culture of compliance over evasion.”
“If client calls are held over Microsoft Teams, then [regulators] would expect these to be captured,” said Matthew Nunan, who formerly led conduct risk for Europe, the Middle East, and Africa at Morgan Stanley.
“The issue is the ability of firms to record, retain, and produce relevant business records, however they are made,” Nunan said.
It’s important to note that most, but not all, HSBC employees are barred from texting on their work phones moving forward. A select group has been granted a pass to use SMS under the condition that their messages are archived.
Additionally, staff personal devices are not impacted by the new regulations.