SEC Focus on Communication Compliance


Digital communications technologies continue to integrate advancement to improve their services. As such, several organizations’ employees have changed how they communicate with their colleagues. 

Microsoft teams, Zoom, and Cisco WebEx, have become the top communication platforms of companies for remote collaboration. Using instant messaging solutions has also become a significant tool for work-related communications. 

However, the rise of digital communication technologies has encouraged regulatory bodies like FINRA and SEC to modify existing compliance rules. As companies perform hybrid work set-up, regulators expect them to comply further with SMS archiving regulations and other laws for conventional digital communication technologies. 

SEC Regulations on Communication Compliance

The U.S. Securities and Exchange Commission aims to protect securities market investors. It has accelerated its regulations to ensure firms have sufficient monitoring and archiving systems for their operations. 

According to the current SEC guidelines, banks and financial institutions should comply with financial regulations text message archivingand other record-keeping activities without compromising the employees’ privacy. 

Mr. Gurbir Grewal, the SEC Director of the Enforcement Division, emphasized the importance of proactive compliance, customer relationship summaries (CRS), and Regulation Best Interest. He also highlighted SEC’s enforcement activities to protect financial firms and security markets from fraud. 

Employee Communication Methods

SMS, emails, and legacy chat are some of the traditional messaging applications used by companies. SEC and FINRA enforce firms to capture, monitor, and archive messages from the company’s issued accounts. It is essential to comply with these regulations to avoid penalties and costs in the future. 

Today, businesses adapt modern messaging applications, including WhatsApp, Signal, Telegram, Viber, and WeChat, to perform business activities. FINRA strictly requires companies to capture voice calls, monitor text messages, and archive them based on FINRA’s retention requirements. The personal use of social media is not included. 

Ultimately, the emergence of modern remote collaboration tools has introduced challenges from regulatory bodies. Companies should work hand-in-hand with the regulators to provide both parties with secure and safe market space.

To learn more about the matter, read this infographic from TeleMessage. 


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