Enhancing Off-Channel Communications Capture and Surveillance

In today’s fast-paced and interconnected world, communication has diversified across various platforms, making it crucial for firms to monitor and manage all communication channels effectively. Gone are the days when surveillance programs only needed to consist of email archive and review and expert network phone call chaperoning. Now, regulators worldwide are requiring firms to understand how their employees are using different communication platforms to conduct business conversations and adjust their surveillance programs accordingly.

Understanding the regulatory landscape

Since 2021, numerous investigations and enforcement actions by the U.S. Securities and Exchange Commission (SEC) and Commodity and Futures Trading Commission (CFTC) have underscored the importance of capturing business-related communications occurring on unapproved channels like iMessage or WhatsApp. These actions have resulted in significant fines, totaling more than $2.7 billion (about $8.3 per person in the U.S.). This regulatory scrutiny is driven by the necessity for accurate books and records, which are vital for investor protection and market integrity.

Key components of a robust off-channel surveillance program

There are four main objectives for an effective off-channel communications capture, archive, and surveillance program:

1. Level Set Regulatory Requirements: A thorough understanding of regulatory expectations is fundamental to ensure your firm’s communications capture, archive, and surveillance procedures meet regulatory expectations.
2. Comprehensive Program Setup: Firms should conduct a detailed audit of all communication channels in use, regardless of policy, to understand how employees are conducting business communications. Determine which channels should be permitted, make changes to policies and procedures, if necessary, in response to current communications practices, and ensure all approved communications are captured and archived correctly.
3. Provide Comprehensive Training: Implement a regular schedule of training about the firm’s communications policies and procedures. This includes regular certifications and attestations to ensure employees understand the firm’s communications policies.
4. Implement Effective Surveillance Practices: Implement proactive surveillance measures to monitor both approved and off-channel communications. This includes leveraging technology to streamline the capture and archiving processes and ensure all communications, whether on corporate or personal devices, are compliant.

Conclusion

By understanding regulatory requirements, conducting thorough assessments, and implementing effective capture, surveillance, and training programs, firms can navigate the complexities of modern communication channels while ensuring compliance and protection of market integrity. For firms looking to enhance their compliance programs, these insights and practical steps provide a solid foundation for addressing off-channel communication challenges in today’s regulatory environment.

Watch out on demand webcast

Our books and records and surveillance experts recently held a webcast to discuss this topic in-depth. Watch the webcast on demand for more information about how to improve your firm’s communications surveillance program.

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How we help

Global regulators are turning up the scrutiny around books and records. Firms need to ensure their eComms surveillance program meets these regulatory requirements and industry best practices.

ACA's eComms offering, integrated within our ComplianceAlpha^® RegTech solutions platform, provides a comprehensive, end-to-end program for capturing, archiving, and monitoring employee communications across a wide array of channels. Not only does it capture data, but it also enhances the efficiency and clarity of monitoring electronic communications. This empowers users to identify risks, detect misconduct, and ensure policy compliance, protecting firms from regulatory fines and reputational damage.

For questions or to discuss how ACA can help you strengthen your firm’s eComms surveillance program, increase efficiencies through technology, and ensure your regulatory obligations are met, reach out to your ACA consultant or contact us here.