December 23, 2011
TextGuard Helps Financial Firms Comply with FINRA Rules
TextGuard, a provider of communication solutions for the capturing, monitoring, and archiving of SMS, text messaging, BBM, instant messaging and voice for smartphones has begun assisting leading financial firms with complying with FINRA Rules that deal with capturing and archiving SMS messages.
Banks, brokerage firms, stock exchanges, insurance companies and hedge fund companies all need to meet specific regulations while leveraging innovative mobile communications methods. Luckily, the Financial Industry Regulatory Authority (FINRA), an independent regulatory body established for securities firms in the United States, is currently focused on ensuring that appropriate mobile electronic communication compliance rules are established and followed.
In the FINRA Regulatory Notice 07-59, FINRA provided guidance regarding the review and supervision of electronic communications that mandates when employing risk-based procedures to review electronic communications, members should adopt a set of rules designed to identify mobile communications such as text messaging and instant messaging that contain errors, complaints or other details that is inconsistent with government-stipulated mandates.
The notice also asks organizations to identify other business areas that may warrant supervisory review. In addition, employees should also be assisted in bettering understanding and complying with specific policies and procedures regarding electronic communications.
To adopt these supervisory procedures, members should follow a set of rules that help them to monitor the implementation of, and compliance with procedures for reviewing public correspondence.
FINRA has also asked users to periodically re-evaluate the effectiveness of the member’s procedures for reviewing public correspondence and consider any necessary revisions. They should ensure that customer complaints are promptly reported to FINRA, and prohibit employees from the use of electronic communications unless such communications are subject to supervisory and review procedures developed by the member.
TextGuard has proven to be the complete mobile compliance organization that firms have engaged to assist with FINRA and other regulatory bodies mandated initiatives, according to company officials. The company provides monitoring, supervisory and alerting capabilities of all mobile phone communication on company mobile devices.
Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.
Edited by Jamie Epstein
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