The most popular feature of a smartphone is a text messaging or SMS messages. Many financial services clients prefer text messaging as a means of communication. Financial services companies must keep a record of all interactions (text message archiving) with clients, both inbound and outbound.
The 2017 Electronic Communications Compliance Survey [1] revealed that 42% of respondents reported that their employees requested text/SMS messaging to be used for business purposes in 2017, compared to 21% in 2016. The survey found that non-email communication channels, including text/SMS messages, are the most dangerous for compliance professionals in financial services.
Many financial service firms prohibit text messaging between clients or their staff. The law requires them to record all client interactions, both inbound and outbound. This is almost impossible when using text messaging from personal phones. Here are the top three tips to lessen the risk of using text messaging as a form of business communication:
Update WSPs Semi-Annually
Written supervisory procedures (WSPs) enable them to use text messaging compliantly in their daily tasks. In addition, WSP should be reviewed, updated, and verified at least twice per year by your compliance team. This will ensure that you enforce all new rules by SEC.
Use the expertise of an SEC Compliance Professional
If your workplace communication landscape is complex, SEC compliance can be difficult. If you don’t have one, you may not have the right expertise to ensure your WSPs are compliant with current standards. You should seek the advice of an outside counsel to ensure your WSPs include all aspects of SEC recordkeeping requirements.
Partner with An Enterprise Text Message Archiving Vendor
LeapXpert is a text message archiver that has compliance specialists who have built a solid reputation over the years as experts in recordkeeping. Our software automates the recording and retention of messages to ensure compliance with FINRA, SEC, and other regulatory agencies. They have seen companies pay heavy fines for violating Reg BI regulations. So they know the ins and out of this industry.
Do you want to see their compliance solution in action? Book your demo here to get started.
