We love email, but let's face the facts. Email was first introduced in the 1970s to 1980s by IT professionals and cutting edge users. In the 80s and 90s, email was adopted by businesses. In the mid 90s, webmail was introduced to the masses and adoption has skyrocketed since. However, SMS Text Message usage are growing fast and financial services firms need to get ahead of the curve.
Today, we have a new generation of advisors who have grown up with cell phones and communicating through text messages their entire lives. We believe text messaging is similar to email use and adoption 20 years ago and will be bigger than email in the coming decade. We are hearing from more advisors who want to use text messaging to grow their business, or are already using it without your knowledge and approval.
Recent Fines and Penalties:
In September 2020, the SEC censured and assigned a $100,000 penalty against Jones Trading Institutional Service, LLC for failing to record and archive business-related text messages.
In December 2021, the SEC and CFTC settled enforcement actions with J.P. Morgan Securities, a subsidiary of JPMorgan Chase and Company, and agreed to pay $125 million to resolve charges that it failed to preserve written communications of its employees.
In May 2022, Bloomberg announced that the SEC had launched an investigation into the use of messaging platforms by Wall Street employees. To conduct this unprecedented probe, the SEC ordered personnel in many high ranking roles to hand over their personal mobile devices for examination.
In September 2022, the SEC announced charges against 15 broker-dealers and one affiliated RIA for longstanding failures to preserve employees electronic communications. The 16 firms agreed to pay penalties totaling more than a $1.1 billion.
Do you have a solution for text messaging capture, archiving and review? If not, schedule a call with us to discuss options on how we can solve your text messaging worries.