Ensure financial services sector compliance, reduce eDiscovery risk, empower your employees
Financial services organizations are constantly juggling the need to meet industry regulatory compliance requirements such as those imposed by FINRA, SEC, FCA, FFIEC, FDIC, CFTC, and MiFID as well as the Dodd-Frank Act, with business drivers including pressure from competition, adherence to corporate governance, and the need to effectively communicate with customers. Enabling the world’s financial institutions to operate in an increasingly competitive business environment depends on real-time communications and instant access to all communication, collaboration, and social networks.
A Tightening Regulatory Environment
The financial services industry includes some of the most prescriptive and stringent regulations in the world. These regulations all have one goal in common; to ensure that financial services organizations play by the rules to ensure fair transactions and protection of customer information. To that end, companies must be prepared to search for and turn over requested information, no matter the format, to regulatory agencies when asked. To accomplish this, companies must incorporate systems that can capture, archive and manage their business information in such a way to be able to respond to an agency information request quickly.
The Actiance Platform helps financial services organizations meet the numerous international and federal regulations for data retention and supervision of target employees by enabling the capture, archiving, control and management of new social communications channels, social media platforms, and email content.
Key financial regulations:
FINRA Rules 3110, 3013 and Regulatory Notice 11-39 (along with similar regulations from IIROC in Canada and FCA in the UK) makes it clear that any communications are clearly within the auspices of the duty to supervise. To ensure FINRA compliance, organizations must capture and monitor all communications to ensure that any representations to the public are based on the principles of fair dealing. Financial institutions have a duty to supervise and prevent forbidden communications such as misleading statements, exaggerated claims, and predictions of investments.
The Actiance platform provides companies to provide full-scale supervisory review for messages posted to a wide range of real-time communication tools, social networking sites, Sharepoint and email to ensure that all messages are appropriate. Suspect communications can be automatically blocked and user notifications sent to train individuals on appropriate messages.
Information Barriers (Ethical Walls) to Deter Conflicts of Interest
SEC, FINRA, and the CFTC compliance requires taking steps to reduce, manage or eliminate potential conflicts of interest, to prevent electronic communications between certain individuals/groups or monitoring communications as required by agency rules. The Actiance platform allows you to set ethical walls at both a group and domain level to ensure that conflicting personnel do not accidentally “meet” in virtual, deal rooms and forums, with full range of message alerts and audit trails that clearly displays when an individual joined a meeting and subsequently left.
Archiving and Data Retention
All financial agency regulations specify a duty to capture and preserve communications for defined periods of time. The U.S. SEC Rule 17a-4 goes a step further and specifies that broker-dealer communications be captured and stored on WORM (immutable) storage. Several of the agencies also specify that additional communications types including email, instant messages (IMs), voice communications, social media activity, and group meeting sessions are subject to retention. Many of the European based data retention regulations state that the regulatory requirements are not bound by format so all forms of communication are targeted.
Effective financial services industry regulatory compliance requires deployment of a centrally managed archiving system that captures employee communications, enables easy review of archived communications in full context and detailed analysis of electronic conversations, including file downloads both internally and externally, complete with a comprehensive audit trail, and provides for ethical walls.