Recording and monitoring communication between employees and customers is essential for organizations in the financial industry. There are specific guidelines that govern call monitoring provided by financial regulators worldwide to ensure safety and smooth operations.
Business transaction records also include the communication and interactions between the employee and the customer, and archiving it for a specific period is important. Recording communication involves legal aspects that any enterprise should be aware of.
In the United States, financial firms are governed by the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority, and the National FFutures Association. Meanwhile, the Investment Industry Regulatory Organization of Canada governs financial firms located in Canada. In Hong Kong, financial firms are governed by the Hong Kong Securities and Futures Commission (SFC).
A mandatory requirement for business firms that use text messaging apps to communicate is capturing and archiving these interactions. FINRA regulations specified general requirements in preserving books and records, making it essential for companies to record voice calls and monitor SMS messages that are utilized for business-related communication.
Along with this, the SEC Rule 17a-3 details the requirements and standards for retention, management, and availability of data in the financial industry. It also contains special provisions specifically for business-related electronic communication. It states that business firms are mandated to capture, retain, and provide all transactions and official business records when required. If enterprises are not compliant with the regulation, it could result in disciplinary actions, civil liabilities, or penalties.
Such examples of regulatory requirements show the significance of recording communication. As times have changed and communication has shifted to various channels, recording communication is relevant in various legal aspects, such as legal disputes wherein courts require submissions of archived communication.
Even though several financial firms are aware that there are regulations they are bound to follow, some are still unfamiliar with the solutions that can help ensure regulatory compliance without the risks of traditional recording practices.
To learn more about the legal aspects of recording communication, here is an infographic from TeleMessage.
