No time like present to tackle thorny problem of off-channel comms
By 
Aaron Nicodemus2023-11-17T21:58:00
For years, executives, managers, and employees at broker-dealers, investment advisory firms, and swap dealers used unauthorized communication channels to conduct company business.
They texted clients and colleagues from their personal devices. They exchanged emails from personal accounts. And, perhaps most systematically, they sent thousands of business-related messages that were not recorded by their employer on apps like WhatsApp, WeChat, Signal, and Slack.
So, what’s the big deal? Why does using unauthorized channels matter?
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefLatest off-channel comms sweep nets SEC, CFTC $477M in fines
Two regulators doled out more than $477 million in fines on a new group of broker-dealers, investment advisers, and swaps dealers that failed to maintain and preserve the electronic communications of their employees, bringing total such fines issued since 2021 to $3.2 billion.
-
PremiumCompliance officers share lack of faith in off-channel comms monitoring policies
Addressing employee use of off-channel communications for conducting business was clearly on the minds of compliance officers who responded to our “Inside the Mind of the CCO” survey, but their confidence in their related policies and procedures was surprisingly weak.
-
News BriefSEC lauds cooperators, whistleblowers in FY23 enforcement results
A big year for disgorgement helped the Securities and Exchange Commission to its second highest total of financial remedies ordered in a single year in fiscal year 2023.
More from Opinion
-
OpinionWhen AI acts: The compliance challenge of agentic systems
Artificial intelligence is no longer limited to generating insights or supporting analysis. With every passing day, AI systems are being designed to initiate actions, trigger workflows, and influence outcomes with minimal human intervention.
-
OpinionA snapshot of the state of financial crime in the United States
Financial crime in the U.S. isn’t just evolving; it is accelerating faster than most institutions can adapt.
-
OpinionTips for creating and implementing a global gifts and hospitality policy
Across the globe, gift giving and wining and dining play a role in building business relationships. But be it a tin of cookies, coveted concert tickets, or a gourmet meal, employees should understand what types of gifts and hospitality are acceptable to avoid exposing their company to risk.