WASHINGTON -- (BUSINESS WIRE) -- Smarsh®, the leading provider of hosted archiving solutions for compliance and e-discovery, today released its fourth annual Electronic Communications Compliance Survey Report at FINRA’s 2014 Annual Conference. This year’s results shed light on the compliance gaps that expose financial services firms to risk, and show that firms accept the use of an expanding number of electronic message types—along with their associated compliance implications.
“This year’s survey results demonstrate how compliance officers are adjusting to new regulatory guidance around the oversight of electronic communications amid a growing list of communication channels – LinkedIn, Twitter, and instant messaging, for instance – that firms may not have used just a few years ago,” said Stephen Marsh, CEO and founder of Smarsh. “Regulatory agencies have made it clear that the oversight of electronic messaging is a key compliance priority, and firms’ surveillance policies and procedures will come under more scrutiny than ever.”
The number one source of FINRA fines in 2013 was related to electronic messaging. The total cost of fines increased by 132 percent, making noncompliance for member firms an increasingly expensive proposition.1 This year the SEC has also prioritized examinations for registered firms that have never been examined.
The survey report addresses several additional aspects of electronic communications compliance. Key findings include:
Complexity in Electronic Message Supervision
Preparing for Exams
About the survey
In January and February 2014, 283 individuals in financial services with direct compliance supervision responsibilities participated in a 31-question survey designed to identify current trends and to share insight on policies and practices surrounding the retention, supervision and protection of electronic communications. View the full survey report at: www.smarsh.com/2014compliancesurvey.
Smarsh® delivers cloud-based archiving solutions for the information-driven enterprise. Its centralized platform provides a unified compliance and e-discovery workflow across the entire range of digital communications, including email, public and enterprise social media, websites, instant messaging and mobile messaging. Founded in 2001, Smarsh helps more than 20,000 organizations meet regulatory compliance, e-discovery and record retention requirements. The company is headquartered in Portland, Oregon, with offices in New York City, Atlanta, Boston, Los Angeles and London.
1Sutherland (2014) “Annual Sutherland Analysis of FINRA Sanctions Shows 27% Decrease in Fines; Number of Cases Nearly Identical” [Press Release]. Retrieved from http://www.sutherland.com/NewsCommentary/Press-Releases/161244/Annual-Sutherland-Analysis-of-FINRA-Sanctions-Shows-27-Decrease-in-Fines-Number-of-Cases-Nearly-Identical