Text messaging has become a common way for financial advisers to talk with their clients. However, regulators like FINRA and the SEC closely monitor these conversations and can issue huge fines if firms don’t properly track them. While many firms know they need to save these messages, they often struggle with how to do it effectively. This guide will show you how to use SMS archiving software and follow rules like FINRA 3270 without overwhelming your IT and compliance teams.
Simply telling employees not to use text messages doesn’t work anymore – clients expect quick responses through text, and advisers will likely use them anyway. It’s better to have a good system in place to manage these communications.
Setting Up Rules for Mobile Devices
The first step is creating clear rules about how employees can use their phones for work. This means sitting down with everyone involved – from advisers to IT staff – and reviewing current policies. Good rules should help employees do their jobs while keeping the firm safe from regulatory problems.
Think about questions like: Can employees use their personal phones for work? What apps are allowed? How should client information be handled? Having clear answers to these questions helps everyone understand what they can and can’t do. These rules should be updated regularly as technology changes and new communication methods emerge.
Using the Right Tools to Save Messages
When saving text messages, it’s not enough to just take screenshots. You need SMS archiving software that can save everything – including emojis, pictures, and other content that comes with modern text messages. The software should be easy to use and able to save messages from different types of phones and apps. It should also help identify potential problems automatically, so compliance teams don’t have to check every single message manually. The system should work smoothly with other compliance tools your firm already uses, making it easy to find and review messages when needed.
Watching Over Communications Effectively
Monitoring text messages isn’t just about following rules like FINRA 3270 – it’s about understanding how information flows through your firm. You need a system that can automatically scan messages for potential problems and alert the right people when something looks suspicious. This includes having clear steps for what happens when someone breaks the rules and keeping good records of everything. The monitoring system should be flexible enough to handle new types of communication while maintaining consistent standards. Regular checks help make sure the system is working well and identify areas that need improvement.
Training Employees the Right Way
Even the best systems won’t work if employees don’t know how to use them properly. Regular training sessions should explain what communication methods are allowed and why following the rules is important. New employees need thorough training when they start, and everyone should get refresher courses regularly. Training should include real examples of what to do and what not to do. Keep track of who completes the training and make sure everyone understands the material. When employees understand why the rules exist, they’re more likely to follow them.
Conclusion
With the right SMS archiving software, clear policies, good oversight, and proper training, firms can let their employees use modern communication tools while staying out of trouble with regulators. Firms can maintain good client relationships while meeting all their regulatory requirements by following these simple practices and keeping up with new technology and rules.
