FINRA Podcast: Electronic Communication - Part 2

FINRA released a podcast on June 10, 2013, focusing on how its consolidated Communications with the Public rule applies to social media and personal electronic devices.

The podcast discussed that, while social media extends the ability to communicate, both FINRA and SEC rules require that firms must be able to retain records of those communications. Firms should also consider prohibiting sensitive electronic communications unless a registered principal has previously approved the content. Similarly, firms should be cautious about third-party posts. This rule also applies to personal electronic devices; although employees can use personal devices for business communications, the firm must have the ability to retain, retrieve, and supervise all business communications. Employees should be familiar with a firm's policies before using personal devices for business purposes.

Download FINRA Podcasts here.See also: FINRA Pocast, Part 1 here.