SEC Focus on Communication Compliance


Effective communication is vital for ensuring company success, especially since employees need to work around real-time information and context. Thanks to the advancement of digital communication technologies, communication has never been easier and more convenient.

Aside from technological advancements, the COVID-19 pandemic has prompted businesses to switch to digital communication tools to facilitate communication between employees and clients. Microsoft Teams, Zoom, and Cisco WebEx are among the most used and preferred tools for remote collaboration.

Accordingly, instant messaging solutions such as WhatsApp, WeChat, Signal, and Telegram for work-related communications has significantly grown. One of the primary reasons employees prefers using instant messaging is its convenience and simplicity. It is faster than email and is easy for people to use.

However, such instant messaging applications without a reliable archiving solutions provider to effectively monitor sms and other forms of communication might spell disaster for a business. It can pose legal risks related to compliance for a company.

The growth of digital communication technologies in regulated firms has motivated regulatory bodies such as the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority to amend the existing compliance rules and introduce new rules that will cover the requirements of hybrid working models.

With this, regulators expect the registered to comply by expanding their existing efforts for modern digital communication technologies, including text messaging compliance. Unfortunately, many organizations still fail to expand their monitoring and archiving systems despite the regulation changes.

Due to this, the SEC has become entirely focused on communication compliance, imposing strict compliance rules and taking compliance violations very seriously. Furthermore, SEC has accelerated the enforcement activities, ensuring firms have adequate monitoring and archiving systems implemented for business-related communications.

One of the SEC regulations states that firms must comply with broker-dealer record-keeping compliance without affecting the employees’ privacy. Failure to adhere to this rule can result in significant monetary and non-monetary penalties.

Read this infographic from TeleMessage that discusses SEC focus on communication compliance to learn more.