U.K. Penalizes Morgan Stanley for Lax Electronic Communications Practices

While the SEC and CFTC continue to target appropriate recording and retention of electronic communications relevant to business operations, a recent U.K. proceeding is an important reminder that firms must also be cognizant of the requirements of other jurisdictions and regulators. The U.K.’s Office of Gas and Electricity Markets determined that Morgan Stanley & Co. International plc (MSIP) had violated recordkeeping regulations applicable to trading in the energy markets by failing to record and retain employees’ WhatsApp messages. The matter resulted in the first fine issued in the U.K. for failure to record and retain electronic communications relating to trading in wholesale energy products, wherein MSIP will pay a penalty of £5.41 million. This article details the relevant regulatory regime and MSIP’s violations. See “SEC and CFTC Continue to Penalize Firms for Electronic Communications Recordkeeping Violations” (Sep. 20, 2023).

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