finra compliance chat text messaging apps

JonesTrading’s senior management knew that its employees were texting each other and the firm’s customers in text messages.They also exchanged such texts with firm customers and “other third parties.”.These RRs sent each other “business-related text messages.”.Upon further investigation, the SEC determined that it wasn’t just one RR, but “several” RRs.Unfortunately, the firm did not retain those text messages, and so could not produce them to the SEC.One of the responsive documents referenced the existence of texts between a JonesTrading RR and a firm customer.Late last year, the firm received certain requests for documents from the SEC as part on an enforcement investigation being conducted not about Jonestrading, but, rather, a third party.

(I mean, that’s the easiest way to avoid the problem with texts, right? Apparently not, as you will see.) Like lots of firms, Jonestrading’s WSPs flatly forbid its personnel from using text messages for business-related communications.According to the Order, the firm was fined $100,000 for failing to preserve “business-related text messages sent or received by several of its registered representatives, including senior management.” One that stood out for the sheer (and frightening) universality of its lesson is an SEC settlement entered into by Jonestrading Institutional Services, LLC. Having completed my Enforcement hearing conducted by Zoom – more about that in an upcoming post – I can finally turn my attention back to some matters that arose while I was busy.

Finra compliance chat text messaging apps