- $2.6B in fines in just two years tied to text message archiving failures
- 95% of advisors use personal devices for a few cases client communications
- Zero tolerance from The SEC about any form of business chats
In today’s advisory scene, text messages, iMessages, and even WhatsApp conversations have become a main channel for financial advisors to communicate with clients. However, with this shift comes a new compliance burden that many RIAs still struggle to meet.
If you’re a Chief Compliance Officer, RIA founder, or compliance professional, ignoring text message archiving isn’t just risky — it invites regulatory missteps and potential damages to client trust.
RIAs Cannot Afford to Ignore Text Message Compliance
Clients expect quick, personalized updates on their compliance standing. For this reason, it is no surprise that texting is now a primary form of communication between many advisors and clients.
SEC Rule 204-2 and FINRA rules make it clear: all business-related communications — including SMS — must be properly retained, supervised, and readily retrievable.
Failure to archive text messages can lead to:
- Regulatory fines that often exceed six figures
- Lengthy investigations that drain resources
- Lasting damage to your firm’s reputation and client relationships
In just the last two years, the SEC and CFTC have levied over $2.6 billion in fines against financial firms for failing to properly maintain and supervise electronic communications — with unarchived text messages and WhatsApp chats at the center of these enforcement actions.
In many cases, firms were blindsided to learn that even a simple scheduling text between an advisor and a client counted as a business communication requiring archiving under Rule 204-2.
Pain Points Facing Compliance Leaders
Every week, we have new conversations with CCOs and firm owners frustrated by the same challenges:
Blind spots: Advisors messaging from personal devices, outside any supervised environment.
Messy manual processes: Screenshots emailed to compliance? Spreadsheets tracking conversations? These approaches simply don’t scale.
Audit anxiety: Few things keep a compliance officer up at night like wondering, “Could we produce every business-related text if the SEC or FINRA came around tomorrow?”
What True Text Message Archiving & Compliance Should Look Like
A strong text message archiving solution for RIAs must go far beyond just storing data. It needs to:
- Automatically capture SMS, iMessages, VOIP [Voice of IP] solutions, WhatsApp chats, and other text message platforms regardless of device (i.e. iPhone or Android)
- Store records in a tamper-proof, SEC-compliant system
- Provide a centralized compliance dashboard for supervision and automated flag alerts
- Allow rapid retrieval and exporting to respond confidently to SEC or client requests
How RIA Compliance Technology Sets a New Standard
Unlike traditional compliance technology providers who push one-size-fits-all, expensive bundles, RIA Compliance Technology delivers a scalable, modern approach.
What sets us apart:
- Automated text message archiving: No extra steps for advisors, no gaps for compliance teams to chase. Constant archiving of messages between advisers and clients.
- Purpose-built for RIAs: From a solo firm to multi-office teams, scale your investment by only what you need.
- Centralized location for supervision: Easily access off-channel communications during routine compliance checks.
- Audit-ready at all times: Download and present communications to regulators in minutes, not days.
- SEC-compliant, with secure storage and easy e-discovery.
Protect Your Firm’s Future and Make Compliance Simple
Your clients trust you with their futures. We don’t want to let something as simple as an unarchived text message put your firm’s reputation, profitability, or license on the line.
Book a free demo with our team today to see how easy it can be to safeguard your communications and meet SEC text message archiving requirements.
Ready to build your compliance technology stack? RIA Compliance Technology specializes in helping newly registered advisory firms implement cost-effective, automated compliance solutions. Contact us today to schedule a consultation and discover how the right technology can transform your compliance burden into a competitive advantage.
