Pioneer in the field of digital communications governance Theta Lake recently clarified the implications of these new fines for recordkeeping compliance.

These fines, which total an impressive $81 million, are on top of the massive $2.6 billion already assessed for offenses pertaining to the upkeep and conservation of electronic communications. This development is a stark reminder that maintaining records is a permanent and non-negotiable component of regulatory compliance.

According to Theta Lake, the current SEC investigations have highlighted how widespread and ingrained recordkeeping abuses are in the sector. The parties concerned comprise a combination of five broker-dealers, seven businesses that are registered as investment advisors in addition to broker-dealers, and four associated investment advisers. The SEC's studies show that employees at all levels of seniority, including managers and supervisors, frequently use unauthorized or "off-channel" communication techniques. These communications, which date at least back to January 2019, frequently dealt with suggestions and counsel and were carried out without adequate supervision or preservation.

The inquiry revealed a concerning finding: many employees were not following the companies' own communication standards and procedures. It was common for employees to utilize personal email, chats, and text messaging applications for business-related discussions, even though there were explicit prohibitions against using unmonitored electronic communication techniques. This flagrant disdain for established procedures exposes a serious failure in enforcing and overseeing compliance within these companies.

The involved companies have made significant steps to correct their compliance frameworks in response to these findings. The use of technology solutions targeted at strengthening record retention capabilities, improvements to training programs, and the hiring of independent compliance consultants are some of the measures. These actions highlight how crucial proactive compliance practices are for reducing regulatory risks and preventing the financial and reputational harm that results from non-compliance.

The financial services industry is being reminded by the SEC's actions how important it is to review and improve communication compliance procedures. The recent fines serve as further evidence that regulatory agencies will not tolerate any breaches in communication oversight or recordkeeping. Businesses must put strong processes in place as they traverse the complexity of today's communication platforms to guarantee that all communications are recorded, tracked, and stored in accordance with legal and regulatory standards.

It is impossible to exaggerate Theta Lake's contribution to overcoming these obstacles. Theta Lake's range of award-winning compliance and security technologies is at the forefront of enabling safe and compliant usage of collaboration platforms, and it has the support of key players like Cisco, RingCentral, Salesforce, and Zoom. Their products ensure businesses to efficiently and confidently fulfill their regulatory requirements by providing a complete strategy to capturing, archiving, and monitoring electronic communications across a variety of platforms.