Some of the worlds leading financial services firms have trusted MobileGuard with their electronic communication compliance since 2009. A pioneer in the Mobile compliance industry, MobileGuard provides fully-compliant solutions which meet all regulatory agencies requirements for electronic communication. Boasting a patented platform which features SMS archiving, as well as partnerships with major carriers, MobileGuard is the only company which aggregates all mobile communications, including but not limited to SMS, Email, Voice, Social Media and Secure Encrypted Cloud communication.
The Gramm-Leach Bliley Act has been in effect since July 1, 2001, safeguarding the people’s rights regarding their personal financial information.
GLBA regulates organizations with the following service offering:
- Financial services
- Tax preparation
- Consumer credit reporting
Any company, providing the services from the list on the left, that violates the Gramm-Leach Bliley Act can face fines as much as $100,000 plus the possibility of jail time. Important articles of the GLBA:
- Section 6801: Organizations must ensure the security and confidentiality of all customer records and information.
- Section 6801: Access to all customer records must be carefully controlled to prevent substantial harm or inconvenience to any customer.
- Storage locations containing sensitive customer information must be protected by strong access controls and secure passwords.
- Section 6801(b)(1) – Companies must ensure that email messages are kept secure and encrypted when being transmitted over a link.
- Sensitive customer information must be protected in case of physical disaster or technological failure.
FINRA Regulations for Financial Services
FINRA sets the guidelines for supervising electronic communications and established the importance of developing supervisory systems and certain procedures to be carried out by organizations.
These procedures include the following:
This involves “flagging” or otherwise categorizing those electronic communications that are related to and/or signify important elements such as:
- Customer complaints
- Technical errors
- Operational problems
- Account instructions
- Conduct in violation to FINRA’s regulations
- Any evidence that may endanger an organization’s repute, finances or legal standing.
The organization must specify which area of their enterprise necessitates a supervisory review.
The employees of an organization must be educated on how to execute mobile monitoring procedures and achieve mobile compliance. Accomplishing the above involves the following actions by the organization:
- Identifying the kinds of communication under review, as well as defining which authorities in the enterprise will conduct the review of the various kinds of communication.
- Supervising a FINRA-compliant review of the communication.
- Re-assessing from time to time how effective the organization is in reviewing the communication, identifying any need for revision.
- Reporting all client complaints, in whichever form they are, to FINRA in accordance with reporting requirements.
- Allowing electronic correspondence to be used by employees ONLY IF the correspondence is under review.
- Carrying out essential and relevant instruction and training.
Organizations are bound by FINRA’s supervisory and review procedures and the specific rule requirements related to public correspondence. All instances of and references to “electronic correspondence” and “electronic communications” (the two terms can be used interchangeably) can mean text messaging as well as instance messaging.
FCA outlines the regulations regarding mobile voice recording and the recording of other important electronic communication. Companies regulated by FCA have to retain the relevant correspondence for 6 months. These include electronic communication related to customer receipts and bargaining & agreeing on equities, bonds etc.
The directive provides synchronized regulations for all the 30 member countries. MiFID effectively replaced the Investment Services Directive on 1 November 2007. As the foundation of the European Commission’s Financial Services Action Plan and the most important legislature to be released under the ‘Lamfalussy’ procedure, the MiFID will greatly impact the operations of EU financial services companies.
Within the context of mobile monitoring, MiFID decrees that all electronic communications related to securities orders should be recorded and securely maintained for a period of 3 years, after which they can be deleted. According to the directive, all recorded communication must be easily accessible and readily produced or reproduced if MiFID requires so for an investigation.
All instances of and references to “Electronic communications” and “Electronic correspondence” are understood to include the following:
- Text messages
- Bloomberg mail
- Video conferencing
- B2B communication devices
- Instant messages
- Chat room correspondence
- Any method of electronic correspondence used in the future
The Dodd-Frank Wall Street Reform and Consumer Protection Act (“The Act”) significantly overhauled the Financial Services regulations affecting all financial services firms. Many of the Act’s provisions are not yet finalized, recent rulemaking related to these provisions pose significant technological and supervisory implications for firms engaged in Swaps activities.
The Rules include new record keeping and risk management processes within affected firms, including the recording of conversations that include any “pre-execution trade information”.
The recordkeeping rules in the Dodd-Frank act can be categorized into 3 regulatory requirements for swap dealers, major swap participants, security-based swap dealers, and security based major swap participants (“swap entities”).
Meeting the new regulatory requirements:
- All relevant communication must be captured
- Ability to reconstruct trades as they happened
- All communication must be monitored by the same rules
MobileGuard’s Compliance solutions provide the ability to reconstruct all trade communications in real-time, tie them to swap transactions and enable a search through every type of related interaction including SMS, voice, instant messaging, email and social media. The solutions can search all communications for compliance risks based on predefined policies resulting in automatic alerts to provide compliance administrators with the information required for a successful audit.
MobileGuard is a feature-rich and user-friendly system that archives all messages in a format that is easy to access. This simplifies the creation and implementation of effective internal mobile compliance policies, as well as compliance with applicable external governing regulatory bodies.