Electronic Messaging: A Growing Compliance Concern
The myriad of ways and new technologies through which employees communicate is an escalating concern for compliance officers.
May 29, 2015 at 05:57 AM
3 minute read
The original version of this story was published on Legal Tech News
The growth of digital communications technology has become both a bane and a boon for compliance workers—particularly those in the financial industry. While electronic communication simplifies many processes, it presents new challenges for staying compliant. A recent survey conducted by e-discovery and compliance solution company Smarsh found that electronic messaging is a growing concern for compliance professionals in the financial services industry.
Smarsh's fifth annual Electronic Communications Compliance Survey Report, which was released at the 2015 FINRA Annual Conference, highlights gaps in financial services firms' electronic message compliance programs, and it shows the growing concern for electronic messaging as a player in identifying corporate risk. Text messaging and social media in particular have compliance officers on their toes.
In an interview with Legaltech News, Ken Anderson, vice president of marketing at Smarsh, pointed out why more compliance teams are taking notice: “One major driver is the scrutiny and sophistication from regulatory agencies. In 2013, the number one source of fines from FINRA was related to electronic messages and in 2014 the number of people barred or suspended during exams by FINRA increased by 15 percent. These are making firms stand up and take notice.”
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