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New Rules About FINRA/SEC Text Archiving

SEC Text Archiving – Strategies to Prepare for 2019 and Beyond

The SEC recently released a Risk Alert, which informs U.S. financial advisors and their staff that they are increasing their surveillance efforts for those who use text messaging or instant messaging apps to communicate with their clients. So, messenger, telegram and WeChat archive chat are a must.

These are some suggestions that can be used to assist financial advisers and companies in complying with their text-messaging archiving requirements:

  • Particularly prohibiting the use of apps or other technologies by businesses. This includes allowing employees to send anonymous messages and allowing automatic destruction.
  • Adopting and implementing policies regarding personal use of mobile devices, such as instant messaging, texting, social media, personal websites, and information security, where advisers allow it.
  • If an employee receives an email message from the firm using a communication method that is not permitted for business purposes, the firm will require that the messages be transferred to an alternative electronic system. The adviser will also provide instructions on how to do this.
  • Advisors who allow the use of social media, personal emails, or personal websites for business purposes should contract with software vendors. They will (i) monitor social media posts, emails or websites, (ii) archive such business communications to comply with record retention rules, (iii) ensure that they are able to identify changes in content and compare postings with lexicon keywords and phrases, and (iv) ensure that they have the ability to identify and track any keyword and phrase variations.


Focus on the Consequences of Non-Compliance

SEC advised member firms and their advisers to include in their policies and procedures a warning that employees may be disciplined or dismissed for violating the policy. They should be able to communicate via message. However, they must also abide by archiving and supervisory responsibilities. If they don’t comply, they will face legal and regulatory action.

For more information about the additional rules and regulations for archiving messages or WeChat compliance monitoring, contact the official website of LeapXperthere.

Nina Harris: A veteran sports journalist, Nina's blog posts offer in-depth analysis and coverage of major sporting events. Her insider knowledge and passionate writing style make her posts a must-read for sports fans.