As the technology develops, communication inside an organization also changes how employees communicates with other each other. When communicating physically got limited because of pandemic, almost everyone utilized the use of digital tools such as Zoom, Cisco WebEx, and Microsoft teams.
WhatsApp, Telegram, WeChat, and Signal are also used for instant messaging. This allows employees, employers, and clients connect with each other.
This continuous improvement has changed the way businesses operate and also prompted the regulation bodies like SEC and FINRA to amend existing rules such as sfc recording. This is to deal and address the sudden rise in digital use.
The new rules, unlike before, are designed to accommodate hybrid working arrangements of most companies today. Regulators expected registered companies to adhere further to modern digital communication technologies.
SEC and FINRA Electronic Record-Keeping Rules
When it comes to regulations, businesses should adhere into this since this can help them in a lot of ways. In this section, you will see some of the rules in compliance on recording work-related electric communications.
The SEC Rule 17a-4 requires businesses and organization to preserve electronic communication for at least six years. It should not be modified any way possible and must meet Write Once Read Many (WORM) compliances. Keeping a separate copy aside from the original should also be done to ensure that there are back-up copies. Not only that but the firms should also timestamp the records with an exclusive number and must be organized accordingly through indexes.
FINRA supervision rule 3110 says that each member must establish and maintain a system for supervising the activities of all associated persons that is reasonably designed to ensure compliance with applicable securities laws, regulations, and FINRA rules.
Such requirements only imply how important it is to understand SEC and FINRA regulations. To help you protect your data, you should also be able to understand and learn the importance of archiving. It will make a big difference as well of firms will comply on this.
For more information about how SEC focus on communication compliance, see this infographic from TeleMessage.
