Communication Compliance and its Need
Regulatory agencies such as SEC, FINRA, ESMA, FCA, IIROC, NFA, MAS, SGX, etc. expect financial firms to comply with certain regulations while performing business communication with customers. Employers are promoting work from home options owing to the pandemic crisis. But the finance and credit industries are a few of the businesses that are at possible risk. Credit firms have strict policies in their office when it comes to matters like data security, record keeping, cybersecurity, client confidentiality, etc. But, as the brokers are working from home these days, it is a cumbersome task to ensure the previously followed policies. Irrespective of the difficulties in the execution of such policies companies must ensure that these policies are accepted and followed throughout the organization. Hence, any potential risk that can be caused while operating from a remote location may be reduced.
Communication between the broker and the customer is one of the key factors that determine the success of the business. It also ensures the customer’s trust in the firm. Hence, selecting a proper communication solution is essential for the business. The practice of using mobile messaging applications like WhatsApp and WeChat for business communications has increased considerably. People use these applications a lot for their personal communication and the user experience has made them comfortable. But tools like these lack the security standards required for enterprise communication.
Exchange Act Rules 17a-3 and 17a-4, FINRA Rule 3110(b)(4) (Review of Correspondence and Internal Communications) and FINRA Rule Series 4510 (Books and Records Requirements), Annex IV Section 2 of the MiFID Org Regulation, Advisers Act “Books and Records Rule” Rule 204-2 are a few of the policies set by the regulatory agencies for maintaining communication compliance in a credit firm. The risk of using a mobile messaging application is that the user (either customer or broker) has the option to chat or call anonymously. Other options like auto-deletion of messages, and the messages or calls being sent via third-party servers make things a little more complicated. If any case confidential data is compromised as a result of communicating through these applications, then it will be a credibility issue for the firm. Both the customer as well as the firm will have to suffer a huge loss in this regard.
This is why the compliance policies mentioned above require firms to adopt measures to record mobile messages and phone calls that are related to the business. If the chats and calls through these applications are not monitored, then it may open any chances to possibilities of malpractices that could seriously affect the credibility and genuineness of the business. Hence it is wise to invest in a software that allows functionalities like WhatsApp archiving and WeChat archiving.
Effect of Communication Compliance on ROI
As mentioned earlier, mobile messaging applications such as WhatsApp and WeChat have become widely popular in business communication. The ease in usability and lesser response times are a few of the main factors that increase the acceptability of these applications. So far we have discussed the challenges that could be resulted while using mobile messaging applications. But, the advantages they have to offer, make them weigh equally; and if proper compliance measures are ensured, then it may not be even considered a drawback.
Once a software solution is adopted that follows the compliance policies put forth by the regulatory agencies, then all business communication through these mobile messaging applications can be recorded. This ensures record keeping, security, and client confidentiality. Messaging applications like these do not require a user to have special training, as most people will be familiar with its usage. Even if a user is not familiar with the application’s usage, the simplicity in user experience that these modern apps offer makes them acceptable to everyone.
A number of recent case studies with regulated firms that incorporated modern mobile messaging tools such as WhatsApp and WeChat have shown that introducing compliant mobile messaging into the business has improved the customer experience and reach. The use of a mobile messaging application helped the company to better interact with their customers and helped them meet customer requirements with speed and efficiency. The use of mobile IM tools had a very positive acceptance by employees as well as customers. Since applications like WhatsApp and WeChat are already common and popular, the deployment and adoption of these applications were seamless.
Another benefit highlighted in the case studies was the ability to use the native WhatsApp and WeChat application as well as the use of mobile and desktop versions. The adaptability and availability at the home and work environment was a huge advantage.
Some highlighted the separation of business and private communication as a major advantage, as well as the ability to store and monitor the recorded mobile communication in the current surveillance and eDiscovery tools of the firms.
When the use of compliant mobile IM tools are not introduced, there is a higher risk that the firm policies might be compromised, especially in areas such as money laundering, insider and illegal trading, collusion, or bribery. Firms should monitor these communications and set proper monitoring policies to meet the regulatory standards.
Join TeleMessage, Bloomberg, and Freight Investor Services to learn how regulated customers are implementing compliant WhatsApp and WeChat communication – signup for the webinar here.
TeleMessage captures and retains mobile content, including mobile SMS messages, voice calls, and WeChat conversations from corporate or BYOD mobile phones to ensure compliance with various data protection regulations. The messages are securely and reliably retained within TeleMessage servers or forwarded to your choice archiving data storage vendor.
Our mobile archiving products securely record content from mobile carriers and mobile devices for various ownership models (BYOD, CYOD, and employer-issued). With our multiple archiving solutions, you can always find the right tools or blend for your requirements:
TeleMessage offers cross-carrier and international mobile text & calls archiving for corporate and BYOD phones. Visit our website at www.telemessage.com to learn more about our mobile archiving products.