Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

SEC Probes Financial Advisory Firms’ Use of WhatsApp and Other Messaging Platforms

Posted on October 27th, 2022 at 2:51 PM
SEC Probes Financial Advisory Firms’ Use of WhatsApp and Other Messaging Platforms

From the Desk of Jim Eccleston at ÍøÆØ³Ô¹Ï.

The Securities and Exchange Commission (SEC) is investing whether financial advisory firms used WhatsApp or other outside messaging platforms to communicate with clients.

The SEC has recently sent letters to several financial advisory firms inquiring into their record-keeping and employees’ communication practices, according to sources familiar with the matter. Specifically, the SEC is requesting information as to which devices and apps firms permit for official communications as well as whether the firms are adequately preserving electronic records of communications on those platforms.

Financial advisory firms are required to regularly monitor business communications in order to flag improper conduct, and compliance with this rule has already become more difficult as numerous employees continue to work remotely. The SEC has already fined J.P. Morgan, Bank of America, Citigroup and Goldman Sachs a combined $2 billion due to allegations that some of their employees utilized improper platforms to conduct business.

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.