The Securities and Exchange Commission (SEC) is now focusing on communication compliance. The agency has issued numerous regulations to ensure companies adhere to its rules regarding business communications. It has even brought enforcement actions against some firms for failing to maintain records properly. With all the sudden outbursts of change, organizations should have a solid conformity plan to avoid expensive fines and the hassle of an investigation.
Obedience to the SEC’s regulations will alsohelp firms know the advantages they could obtain. Some of thecommunication compliance programs factorsto remember are:
- Employee Training
This is one of the most vital components ofa good communications compliance program. In addition to keeping employees abreast of company policies, organizations should ensure that the members know what to store and how to handle confidential materials.
- Utilizing Hybrid Working Models
Another area of focus is the use of modern collaboration tools. With the rise of remote work and hybrid working models, organizations have been forced to adopt new and innovative communication methods. These include text and chat applications, social media, and video marketing.
Each of these platforms triggers the same regulatory compliance obligations as email.Investing in these archiving solutions is smart for companies that want to comply with the SEC’s regulations.WeChat compliance is one of the popular determinants for several firms. Companies should monitor business conversations made through the application despite having no end-to-end encryption.
SIGNIFICANCE
Communication compliance is important to the SEC’s efforts to maintain market integrity and investor protection. The agency recently announced an inquiry to determine the digital communications of Wall Street banks. Since October 2021, the SEC has scrutinized registrants’ communication retention practices.
If your firm isnot compliant, youmust audit your communications channels and processes thoroughly.Learn more about how and why SEC focus on communication compliancein the infographic below was created and designed by TeleMessage:
