Securities Firms Hesitant to Share Data Amid Regulatory Scrutiny

Recently, securities firms have become increasingly cautious in responding to data requests from journalists. When asked for numerical data, such as customer returns or investment status, they often provide only minimal information or decline to share any data at all.

The reasons for this cautious approach are varied. Customer-related data is considered sensitive for business operations, and the process of compiling relevant figures internally can be quite complex. In particular, returns can vary based on the criteria and methods used for calculation, making it challenging to produce accurate data. Even when firms manage to compile and provide figures, they may face demands for further clarification after the article is published. This creates a sentiment among staff that there is little reason to share data externally and risk complicating matters.

However, industry insiders suggest that this cautious atmosphere is influenced by the Financial Supervisory Service's (FSS) post-publication checks.
A representative from one securities firm stated, "There are instances where the FSS contacts companies after data has been published to verify whether the figures were actually provided to the media and how they were calculated." While the FSS does not necessarily take issue with the provision of data itself, securities firms feel burdened by the need to respond to inquiries from regulators after dealing with the media.

As a result, there is a growing sentiment among securities firms that it may not be worth the trouble to provide detailed data. By withholding information, they reduce the likelihood of facing additional scrutiny from regulators, leading to a reluctance to disclose specific figures, especially those directly linked to customer returns.

Consequently, obtaining customer return data from the FSS through requests from lawmakers has proven difficult. A staff member from a congressional office remarked, "With the national audit approaching, it seems like the FSS is intentionally withholding information."

What is driving the FSS's data oversight? Some speculate that increased market volatility has prompted financial authorities to tighten their control over figures and information that could impact the market.