SEC Focus on Communication Compliance

The growth of technology is even more prevalent today with the numerous developments made in the industry. This continuous improvement has changed the way many businesses operate. Nowadays, almost every industry relies on communications apps, such as WeChat, WhatsApp, and Telegram, to collaborate with their fellow employees and customers. The shift from traditional communication to digital has been pushed further when the pandemic happened. 

The unprecedented growth of digital communication technologies has forced regulatory bodies, such as SEC and FINRA, to amend existing compliance rules. Unlike before, the new sets of rules are made to accommodate the hybrid working setup of most companies these days. In doing so, regulators expected the registered firms to comply further by expanding the existing efforts for modern digital communication technologies.

Like the Texas 944 text message bill designed to restore public trust to state’s Open Records Law, the communication compliance rules mandated by SEC and FINRA are also made for a good purpose. These rules are set to ensure the safety of both organizations and their employees, especially those who still use social media platforms.

Social media sites, such as Facebook, Twitter, and Instagram, are usually used for personal reasons. However, some companies still utilize these sites for business communications. This can bring confusion as business-related purposes should be recorded in agreement with the communication compliance, while the personal use of these sites are not subjected to FINRA’s regulations. Therefore, companies must know the importance of differentiating between personal and business-related communication content. 

Fortunately, the emergence of mobile messaging applications, such as WhatsApp, Signal, WeChat, Signal, Telegram, has paved the way for more secure business communication. By using these applications, organizations can comply with SEC and FINRA regulations. Furthermore, they can follow the requirements of the regulatory bodies to instant message capture, monitor text messages, and call/messages archival.

For more information regarding SEC’s focus on communication compliance, you can refer to this infographic created by Telemessage.