Mobile Compliance

As text messaging has proliferated in business, so too have regulations governing its use. Unlike emails, text messages have a limited lifespan and cease to exist after a period of time. Since the use of text messaging is increasing, it is inevitable that there will be an increase in lawsuits involving text messages.

 

In the financial services sector, text messages are seen as a form of electronic communication and need to be treated the same way as emails with regard to the preservation, review and approval of messages. One regulation specifically governing the use of text messaging in financial services firms engaged in stocks, equities and securities trading is Regulatory Notice 07-59, issued to member firms by the Financial Industry Regulatory Authority. In 07-59, FINRA noted that "electronic communications," "email" and "electronic correspondence" may be used interchangeably and can include such forms of electronic messaging as text messaging. 

 

Consequently, companies will increasingly need to adopt new technology in order to archive, filter and sometimes monitor their employees' text messages in a compliant manner. This can protect their reputation, meet regulatory requirements and quickly respond to any potential litigation.