Beyond Email: Supervising Modern Communications

Rule modernization

FINRA’s ongoing rule-modernization effort aims to clarify expectations and reduce unnecessary burden, especially around what counts as “business as such” communications. Firms have asked for more guidance on social media, AI, and electronic records, areas where ambiguity still causes operational strain.

Advertising review pilot

FINRA’s Revisions Pilot Program now allows firms to resubmit corrected communications free of charge, helping ensure that compliant, investor-facing materials reach the public faster.

Capturing and supervising texts, apps, and chat messages remains a top concern. Panelists noted that independent-contractor models and client preferences make this especially challenging. Many firms rely on multiple vendors and frequent attestations to stay on top of it.

Third-party vendors

Smaller firms often balance cost and capability. Panelists stressed the need for continuous oversight, not “set it and forget it,” and to monitor for hidden chat features or updates that might create new compliance exposures.

Supervision and recordkeeping

FINRA emphasized that supervision should be risk-based and content-focused, not form-focused. Firms should understand how each communication channel works and tailor supervisory procedures accordingly.

The same content standards apply online as anywhere else. Static posts require pre-approval and interactive content can be monitored through firm procedures. Training, surveillance, and documentation remain key.

AI-generated communications

Whether written by a person or a chatbot, the same rules apply. Firms should document how they supervise AI-assisted content, including chatbots, and understand whether communications are uniform or tailored to individual users.