SEC Focus on Communication Compliance

By / 11 months ago / Tech / No Comments
SEC Focus on Communication Compliance

Before modern messaging applications, emails and legacy chat applications were prominently used for business communications. SEC and FINRA require firms and organizations to monitor, capture, and archive email messages from accounts issued by firms. Legacy applications such as Skype and old SMS and text messaging must also comply with SEC and FINRA’s archiving regulations.

Today, many have seen the continued advancement of digital communications technologies and how it has broadly changed how employees communicate and interact. After the pandemic began, modern communication tools like Microsoft Teams, Zoom, and Cisco WebEx became the preferred choices of organizations to continue collaborating even in a remote setup. Secure instant messaging applications like WhatsApp, WeChat, Signal, and Telegram for work-related communication have grown significantly recently.

This growth of digital communication technologies in firms and organizations has motivated regulatory entities such as the SEC and FINRA to amend some current compliance rules and introduce new policies that cover the requirements of remote working models. With this, regulators expect firms to comply further by expanding the current efforts for modern digital communication technologies and mobile archiving.

However, some organizations still fail to expand their monitoring and call archiving systems for modern digital technologies. The recent speech from the SEC Director of Enforcement and the SEC sweep that followed showed the initiatives of the SEC in focusing on communication compliance.

SEC, FINRA, and other regulatory bodies worldwide must regulate how businesses and organizations monitor and record employee communication in the workplace. With the advancement of digital communication technologies, regulatory bodies must continuously assess their impact and update compliance regulations to lessen or minimize compliance risks.

SEC’s focus on communication compliance shows the importance of prioritizing safety and compliance in digital communications technologies used in the workplace. As applications emerge for communication and collaboration become imperative for businesses, policies, and guidelines are crucial for security.


David Curry

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