Text archiving plays an essential role for companies. Not only it protects your company’s reputation, but it is also vital in tracing text-based evidence to prove certain legal cases.
With the data explosion in the past, organizations need to use verizon SMS archiving to help them secure and deliver diverse data without adding costs to their IT capabilities.
Verizon text archiving has become vital as many companies use modern texting and chat applications for collaborative business activities. It is also beneficial in complying with SEC and FINRA communication regulations.
SEC and FINRA Communication Compliance
The U.S. Securities and Exchange Commission (SEC) is a regulatory body that aims to fulfill its missions, such as:
- protect investors;
- promote fair, orderly, and efficient markets; and
- facilitate capital formation.
Over the years, its regulations have improved to ensure that businesses have secured monitoring and archiving systems. All individuals engaged in trading securities and company-related people should comply with SEC Rules 17a-3 and 17a-4. These are the most significant regulations of the SEC and are promoted by Financial Industry Regulatory Authority or FINRA.
Rule 17a-4 requires the company to secure their records using electronic recordkeeping. It prohibits overwriting and deleting messages, calls, and documents for at least six years.
FINRA also released a new guideline surrounding using text messaging tools in financial firms. According to its directive, a firm should retain its records of communications as required by SEA Rules 17a-3 and 17a-4 and FINRA Rule 4511.
Costs of Non-Compliance
You are prone to penalties if your company fails to comply with these rules. Here are the monetary and non-monetary fines for non-compliance with the recordkeeping requirements of the SEC and FINRA.
A. Monetary Penalties
$1,000 to $15,00
A fine of $10,000 to $146,000 for aggravating factors
Higher penalties for significant aggravating factors
B. Non-Monetary Penalties
The accountable individual faces suspension for ten business days to 3 months, depending on the weight of aggravating factors.
The company is subject to 10 days to 2 years suspension or expulsion.
To learn more, read this infographic from TeleMessage.
