SEC Focus On Communication Compliance


The impact of technology is seenin every corner of modern workplaces. Among its various benefits, the changes in business communication are one of the most notable.Many organizations have started leveraging modern communication tools to facilitate engagement between colleagues and clients in recent years.

The COVID-19 pandemic has accelerated this trend. More and more employees prefer to use secure instant messaging solutions like WhatsApp, Signal, WeChat, and Telegram that offers Verizon text recordingfor work-related communications. Additionally, as most conversations are needed to be held virtually, companies rely on modern communication tools like Microsoft Teams, Zoom, and Cisco WebEx for remote collaboration.

While such communication tools help maintain effective communication, most workplaces do not have the right tools to engage with people for business-related purposes while remaining compliant. Because of this and the unprecedented growth of digital communication technologies in regulated firms, regulatory bodies such as SEC and FINRA amended specific existing compliance rules and introduced new regulations covering the requirement of hybrid working models.

With this, regulators have expected firms to comply by expanding their existing efforts for modern digital communication technologies. However, many still fail to adhere to new regulations. The SEC and FINRA have also highlighted the importance of record-keeping rules.

Under SEC Rule 17A-4, broker-dealer firms must capture or monitor text messages, archive any electronic communications, and retain them for at least six years. Accordingly, FINRA issued guidance regarding social media usage for business communications.

According to the guidance, firms must monitor and capture social media posts, chats, text messages, voice calls, and emails. It also highlights the importance of differentiating personal and business communications.

It is expected for regulatory bodies to continue assessing the impact of the advancements of digital communication technologies to assess and update their compliance requirements to minimize mobile compliance risks.

Therefore, businesses must ensure to have a robust monitoring and archival solution. Otherwise, they might face various monetary and non-monetary penalties.

If you want to learn more about SEC focus on communication compliance, read this infographic from TeleMessage.


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