Gurbir Grewal, the Securities and Exchange Commission’s newly minted director of Enforcement Divsion, gave a wide-ranging speech in October outlining his views on compliance, and touching on topics from Reg BI to electronic communications recordkeeping. A few days later, news of the SEC’s horizontal sweep of broker-dealers’ digital communications channels compliance broke, providing an exclamation point on the director’s presentation.
The persistent business criticality of electronic messaging systems coupled with the SEC’s sweep presents a perfect opportunity to revisit compliance best practices for digital communications. A refresher is also timely given the rapid adoption of new collaboration tools like Zoom, Microsoft Teams, Slack, and Cisco WebEx during the pandemic.
The baseline rules requiring broker-dealers to capture, retain, and supervise electronic communications are found in SEC Rule 17a-4 (recordkeeping and retention in non-rewritable, non-erasable format) as well as FINRA rules 3110 (supervision) and 2210 (communications with the public).
Article source: https://news.bloomberglaw.com/class-action/electronic-communications-compliance-in-light-of-the-secs-sweep
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