SEC Focus on Communication Compliance

SEC Focus for Communication Compliance

The Securities and Exchange Commission (SEC) has been critical in promoting communication security practices like Verizon SMS archiving in the financial industry. The SEC is responsible for enforcing federal securities laws, which include rules and requirements related to communication with investors and the public.

With the increasing use of technology like social media and other electronic communication channels, the SEC has become stricter with implementing communication compliance within the United States. This is to ensure the safety of the people when it comes to financial activities.

Institutions must comply with SEC’s communication policies to protect themselves from fraudulent activities and be liable in case of such. Financial companies can ensure they adhere to these communication laws by accomplishing the following:

Familiarizing Themselves with SEC Rules And Regulations

The first in complying with SEC rules and regulations is knowing the agency’s standards. One of the most notable regulations is the Regulation Fair Disclosure (Reg FD), which requires companies to disclose material information to investors at the same time.

Designating a Compliance Officer

Appointing a compliance officer is a standard in financial institutions. The officer helps ensure that the company complies with SEC communication policies. They are in charge of monitoring and implementing policies within the organization to verify communication compliance.

Establishing Written Communication Policies and Procedures

Financial companies should establish written policies and procedures for communication with investors. This includes guidelines for social media and other public disclosures. These documents should be regularly reviewed and updated to ensure compliance with SEC rules and regulations.

Implementing TechnologicalSolutions

With the increasing use of technology, financial institutions should use accompanying solutions to uphold communication security. Digital tools like Verizon text archiving help monitor and record all communication with investors in email, social media, and other electronic communications. Additionally, these solutions should be designed to comply with SEC requirements for stronger compliance.

Aside from these tips, there are other ways for companies to comply with SEC standards. Read this infographic by Tele Message, a message archiving solution that satisfies SEC regulations.