The Regulatory Requirements related to Mobile Communication and Instant Messaging have been getting tighter in the Financial Services industry. The common goal of all regulations is to ensure a clear audit trail of communications across all channels, so that regulators can make informed decisions in case of disputes, and protect investors from various financial malpractices like insider trading, unfair trading practices, fraudulent claims, etc.
SEC 17a-4 and NASD 3010 are some of the most relevant regulations for Financial Services Enterprises. SEC 17a-4 and NASD 3010 are aimed to protect investors from fraudulent claims by securities dealers. SEC 17a-4 was amended in 1997 to include requirements for the storage of electronic records. SEC 17a-4 and NASD 3010 apply to all individuals and organizations involved in trading securities including broker dealers, fund managers, securities firms, stock brokerage firms and banks. The companies violating these regulations have faced market penalties and monetary fines running into millions of dollars.
Now, whether you are a securities investment firm or a broker, staying connected to your clients, colleagues and information is critical to your success. Today, most financial services professionals, brokers and traders use a wide range of smartphones, including Blackberry, Windows and Android, along with a host of third-party applications and services to receive, save and respond quickly to messages involving market data. These financial services professionals also share and forward a wide range of information to their clients through their smartphones to help in building client relationship and improve decision-making by connecting wirelessly to Business Intelligence or Sales Force Automation applications.
This essential business need for constant communication with team members and clients has to be managed along with the regulatory compliance requirements that apply to Mobile Communication and Instant Messaging. Therefore, Financial Services enterprises need a comprehensive mobile compliance solution that can work with a wide range of smart phones including: Blackberry, Windows and Android Smartphones.
The Mobile Compliance Solution should offer core features like logging, archiving, filtering, and alerting of all electronic communication on mobile devices including text messages, PIN messages, and BlackBerry Messenger, to ensure that the enterprise is in compliance with FINRA, SEC and FSA mandated regulations like SEC 17a-4, MiFID and NASD 3010.
The Mobile Compliance Solution should also be flexible to meet mobile e-discovery requirements as defined by the Federal Rules of Civil Procedure (FRCP). Therefore the Mobile Compliance Solution should be able to integrate with many existing archiving solutions already installed in a given Financial Services enterprise. And since security is a key concern, the Mobile Compliance Solution should encrypt all logs and data as they are captured and archived.