Organizations such as those in the financial industry must record and monitor business communication between customers and employees. Financial regulators around the world have established guidelines for call monitoring to ensure safety and smooth business interactions.
Recording business transactions also includes communications and interactions between employees and customers. Any enterprise must be aware that recording communication also has legal implications and that it is important to archive it for a specified period under specific regulations.
The U.S. Securities and Exchange Commission, Financial Industry Regulatory Authority, and the National FFutures Association govern financial firms in the United States. On the other hand, financial firms in Canada are governed by the Investment Industry Regulatory Organization of Canada. Financial firms in Hong Kong are managed by the Hong Kong Securities and Futures Commission.
Businesses that use text messaging apps for communication must capture and archive these conversations. FINRA regulations stipulated general requirements for preserving books, records. Companies must record voice calls as well as monitor SMS messages used for business-related communication.
Aside from this, the MAS Blue Book related to archiving mobile communications also has various sections that specify how business firms should record phone calls and other conversations of market participants. MAS can impose penalties for non-compliance with these regulations, such as civil liabilities, fines, and sanctions.
The SEC Rule 17a-3 outlines the standards and requirements for data retention, management, and availability in the financial sector. It also includes special provisions for electronic communications relating to business. It stipulates that all business entities must record, keep, and provide all official business records and transactions. Failure to comply with the regulations could lead to disciplinary actions, civil liability, or even penalties for enterprises.
These examples show how important it is to record communication. Recording communication is important in many legal aspects. For example, legal disputes may require that courts receive archived communications.
Although many financial firms know that there are regulations that they must follow, not all are familiar with the methods that can help them comply without taking on the risks associated with traditional recording techniques.
If you want more information about the legal aspects of recording communication, here is an infographic provided by TeleMessage.