The U.S. regulator fined Deutsche Bank $12.5 million due to the fact that the organization did not prevent the dissemination of confidential information via the intercom system. About it reports Bloomberg with reference to the regulatory authority of the financial services industry of the United States (Finra).
Division of Deutsche Bank Securities passed inside information using intercom with speaker, without regulating access to employees. While Finra indicates that the company has for many years ignored the warning that its system of monitoring was inadequate. The service representative calls the neglect of the Deutsche Bank audit results “outrageous.”
Finra claims that at least one employee of the company gave customers “potentially sensitive” or “substantially internal information in compliance with Deutsche Bank’s confidentiality rules.
Financial Times writes that the research Department equity capital used the sound of the factory hooter to warn the staff about the change in the stock of the Fund. This same sound was used to signal the results of a major transaction. The publication notes that this practice is widespread on wall street to help the traders to react quickly to changing conditions.
However, from 2008 to 2014, the division of Deutsche Bank broadcast this sound in the Department of cooperation with private clients, which serves the “very rich” people, writes the FT. Thus in 2014, the office took steps to limit employee access to this information, but until that time, as found by Finra, Deutsche Bank ignored instructions.
The Bank itself has not confirmed nor denied the information of the regulator. However, he agreed to implement the system of monitoring that complies with the rules and regulations of Finra.