SEC Focus on Communication Compliance

SEC Focus on Communication Compliance

The Securities and Exchange Commission (SEC) is a regulatory agency responsible for enforcing federal securities laws in the United States.

The SEC has many duties under its care. But as the world continues to move toward digitalization, the regulatory board increased its focus on communication compliance.

For the previous years, the SEC has noticed a shift in how younger generations of consumers and the workforce exchange messages. They observed that mobile SMS seems to be one of the most utilized forms of communication.

That said, the Securities and Exchange Commission has placed several regulations to ensure companies comply with the communication requirements.

Communication compliance is critical for companies because inaccurate or misleading communications can lead to significant legal and financial consequences.

One provision includes that companies must have instant message capture.

This implies that businesses, particularly financial firms, must have appropriate regulatory technologies to capture voice calls, text messages, and communication through instant messaging solutions to archive text messages.

Since the onset of the pandemic, text and instant messaging have experienced a significant transformation. Over the past years, these communication methods have evolved from a primarily casual communication channel reserved for friendly conversations to an increasingly popular means of discussing business-related matters, posing extreme risks for many companies.

By archiving, all pertinent business conversations can be securely recorded. This ensures they are retained even if one of the parties involved deletes a chat, individual message, or profile.

Besides SMS, some companies have also utilized social media for communicating, especially for internal operations.

This calls even more for companies to have archiving solutions and social media policies, ensuring all employees understand what is appropriate to share on social media and what is not.

Enterprises failing to comply with these regulations will be at risk of facing higher monetary and non-monetary penalties.

Avoid Facing SEC Sweeps with Telemessage’s SEC Compliant Archiving Solutions

With TeleMessage, companies can be empowered to use contemporary messaging applications on both mobile and desktop platforms.

Our mobile archiving solutions securely capture content from mobile devices and carriers, enabling businesses to comply with recordkeeping regulations and other compliance requirements.

For more information about SEC compliance, check out this infographic by Telemessage.