How are firms handling mobile device use?
Personal and corporate-issued devices are allowed
Only corporate-issued devices are allowed
Our company does not issue mobile devices. Employees use their own
I don’t know
How do firms justify not archiving text/SMS messaging when they allow it for business?
Not supervising mobile?
Expect to be fined.
In December 2016, FINRA censured and fined a Georgia firm $1.5 million, in part, for failure to retain approximately one million text messages sent using firm-issued devices. The firm had a policy of prohibition, which certain employees violated. Regardless of the policy, FINRA found the firm in violation of its requirement to preserve all business communications.
Read our 5 Step Guide to Building a Text Message Compliance Program
More notable fines from 2016
In March 2017, FINRA fined and suspended a Texas broker for one month for unapproved securities-related communications with two customers via text message, violating the firm’s Written Supervisory Procedures (WSPs). The firm did not capture, review or retain the broker’s text communications.3
In December 2016, a New York advisor was fined and temporarily suspended for using a mobile phone to communicate with customers via text message without the firm’s knowledge. The firm did not review or retain any of the text messages.4
In November 2016, a New York advisor was fined and given a 60-day suspension for using text messaging on a non-firm-issued smartphone to exchange business related messages with a customer, in violation of the firm’s policies. This use of text messages caused the firm to fail to retain those communications and undermined the firm’s ability to supervise the advisor’s communications with a customer.5
Get Ahead of the Game – Download the Full 2017 Electronic Communications Compliance Survey Report
Don’t get swept up in the growing number of FINRA and SEC regulatory actions. In our full survey report, you’ll learn about common compliance gaps, what regulators are looking for, and how other firms are managing the challenges of supervising new communication channels.