Welcome!

News Feed Item

Smarsh Survey Reveals How Compliance Can Keep Pace in Complex Regulatory Environment

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

  • The number of electronic messaging platforms allowed by firms for business purposes has nearly doubled in three years.
  • The vast majority of respondents (80 percent) believe message supervision is more complex than ever and as such, 83 percent agree that a single platform to manage and search electronic messages is important to critically important.
  • While the number of electronic messaging types being archived also nearly doubled, there is still a significant gap between allowed channels and those that are archived for retention and supervision.

Text/SMS Messaging

  • Nearly all respondents (88 percent) work for firms that issue at least one type of mobile device to employees.
  • Despite easy access to text/SMS messaging, more than one quarter of respondents do not have a policy governing use or prohibiting text/SMS messaging. Out of those who do allow text/SMS messaging, more than two-thirds do not have a retention/supervision solution in place for it.
  • Fifty-nine percent of respondents have minimal to no confidence they could produce requested text/SMS messages if requested as part of an audit.

Preparing for Exams

  • Never-before examined registered investment advisors (RIAs) need to be prepared for increased regulatory scrutiny. Insights from those who have been examined more recently and/or frequently will help RIAs prepare for exams.
  • RIAs lag behind FINRA-member broker-dealers (BDs) in retention and supervision systems for electronic messaging channels such as instant messaging, text/SMS messaging, Twitter, Facebook and LinkedIn.
  • More than half of RIAs (53 percent) are concerned with their ability to produce data upon request, whereas only 29 percent of BDs expressed concern.

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.

About Smarsh

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

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices t...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...