The SEC is a federal agency established in 1934 tasked to oversee the securities sector. The SEC enforces laws and regulations on trading, investing, and public offering of securities. Any company that sells securities, which are regarded as investment contracts, is subject to SEC regulation. It may also take action against individuals or organizations it believes have disregarded SEC rules.
Investors now trade securities in a safer environment, but numerous corporations have been hit with multi-million dollar fines as a result. You need to be aware of SEC requirements if your company engages in any of the covered SEC activities.
Rule 17a-4 is one of the most significant SEC rules and regulations. It covers the following rules:
1. Disclosure of important facts
2. Sending of promotional items
3. Providing investment advice
Rule 17a-4 provides that businesses must maintain records of all customer conversations. Emails, text messages, phone calls, and posts on social media are all examples of covered communications. Affected organizations are required to keep these records in a location that makes it simple to find and retrieve them.
Moreover, companies were obliged to change course and embrace either hybrid or entirely remote work due to the pandemic. Workers were also forced to employ non-traditional communication methods. Because new channels like WhatsApp, WeChat, Signal, and Telegram are now also used for business communications, the SEC clarifies that regulated companies must also monitor them to remain compliant.
However, the SEC has brought enforcement actions against multiple corporations for violations of communication regulations. Some people have hypothesized that popular apps like WhatsApp are to blame. A closer examination reveals that this is false. The true disparities were traced back to improper record-keeping and suspicion of intentional evasion.
To attain full compliance, companies must audit their communication channels and, if necessary, make changes as a proactive measure. It may be necessary to invest in archiving solutions.
Your needs for communications compliance are easily met by professional Verizon archiving applications. No matter the channel, the appropriate platform can automatically record and archive all of your employee discussions.
Learn more about modern communication lines archiving in this infographic by Telemessage.