SEC Focus on Communication Compliance

The exponential development of digital communication technologies in regulated organizations has prompted regulatory bodies such as the SEC and FINRA to modify existing compliance rules. They also introduce new regulations covering the requirements of hybrid working models. 

Nonetheless, some organizations still need to update their surveillance and archiving systems, like WeChat compliance, to accommodate modern digital technologies. Recent remarks by the SEC’s Director of Enforcement Division and the subsequent SEC inspection demonstrate the SEC’s continued commitment to various communication compliance, such as Telegram compliance.

What Is the SEC or Securities and Exchange Commission?

The SEC is a market regulator whose mission is to protect investors, preserve equitable markets, and facilitate capital access for businesses. This regulatory organization has eleven regional offices and six divisions. It requires public companies, asset managers, and investment professionals to disclose vital financial information, enabling investors to make the most knowledgeable investment decisions possible.

To protect investors, the SEC will also enforce federal securities laws and hold lawbreakers accountable. In order to maintain equitable and efficient markets, the SEC also monitors the market and modifies rules and regulations as the market environment changes.

The SEC Sweep on Communication Compliance

As the primary US regulatory agency established to protect investors in the securities market, the SEC has accelerated its enforcement activities to ensure that businesses have adequate surveillance and archiving systems for business-related communications. According to SEC regulations, financial institutions must maintain broker-dealer records without violating the privacy of their employees. Offenders who violate the rules on recordkeeping are subject to monetary and non-monetary penalties.

The SEC conducts periodic sweeps to collect information on firms it suspects are failing to comply with regulatory requirements. Sweeps can sometimes become formal regulatory inquiries depending on the information and circumstances.

The SEC, FINRA, and other global regulatory bodies must handle how companies monitor and record employee communications. Knowing how SEC focuses on communication compliance will help your firms avoid future SEC sweeps.


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