Photo: Adobe StockAfter Fining Investment Firms Billions for Lost Text Messages, Regulators Turn Scrutiny to Audio Recordings
"Audio continues to be an important form of communications, and you have retain and preserve those communications," said James Sherer, a partner at BakerHostetler.
December 10, 2024 at 03:33 PM
4 minute read
After hammering the financial services industry the past three years with billions of dollars in penalties for failing to retain written communications, federal regulators are reminding firms to keep a sharp watch on their audio messaging.
In September, the Commodity Futures Trading Commission charged the Minnesota-based brokerage firm CHS Hedging with failing to make or retain 3,000 audio recordings during transactions with clients. Minnesota-based CHS cooperated with the probe and settled it by agreeing to pay a $650,000 penalty. A company spokesperson said CHS is committed to improving its compliance and risk management practices.
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