Tech Wil

The Technology Guide


5 Signs Your Company is not FINRA or SEC Compliant

Compliance is one of the hallmarks of a trustworthy business since this means they protect confidential data. This is especially crucial for financial, legal, public, and healthcare organizations.

Regardless of which sector your company belongs to, you must take all steps necessary to ensure text messaging compliance with the SEC or FINRA. This is where archives are handy, as they caneffectively record all conversations sent to and from your company.

From a lack of archived text messages to regulatory violations, here are the telltale signs your company may not be compliant with the SEC or FINRA:

Lack of Archiving

Archiving business communications is a critical step toward maintaining compliance. The list of information to archive may increase over the years as the business sector expands and creates new channels.

All firms are requested to produce copies of emails, text messages, and many other electronic documents at any moment. For unprepared companies, this could come as a shock.

If you are not using archiving software, you are at an increased risk of compliance violations. This is because you may not have the messages recorded, resulting in the inability to produce documents.

Inadequate Documentation

Archiving your communications is insufficient to convince the SEC or FINRA about your compliance practices. Having supporting documents for your archived conversations is vital to your credibility.

These documents include the following:

  • Electronic communications supervision evidence
  • Written supervisory procedures
  • Policy enforcement for retention and supervision
  • Audit trails with review procedures

If you cannot show evidence proving excellent compliance practices, the SEC or FINRA may still flag your business.

Failure to Follow Disclosure Requirements

The SEC and FINRA mandates all businesses to follow strict rules for reporting and disclosure. Non-compliance is easily noticed if the company fails to meet all the criteria.

Obligations mandated by these governing agencies include:

  • Timely filing of required reports
  • Adherence to financial reporting standards
  • Disclosures of material information

Missing Compliance Training and Supervision

As mentioned earlier, supervision is a supporting document to prove the effectiveness of your compliancepractices. Archiving alone is ofteninsufficient; you’ll need a clear set of policies and training procedures.

Lack of compliance training for your employees may indicate non-compliance with the SEC and FINRA requirements. Education and supervision are essentialto ensure your workforce understands and adheres to regulatory guidelines.

Regulatory Violations

A history of regulatory violations, disciplinary actions, and enforcement by the SEC and FINRA should be enough for your company to take appropriate measures to enhance and retain the correct compliance policies and practices.

Fines are expensive, and reputational damage can often become irreversible, so don’t let the risks pile up. If you want a practical solution for your compliance blues, don’t hesitate to contact LeapXpert, the leading archiving software provider.