An investigation into the use of off-channel and unpreserved communications by the SEC has led to another 16 firms being fined for recordkeeping failures. The $81m in penalties adds to the $2.6bn already levied for failures to maintain and preserve electronic communications, serving as a stark reminder that regulators’ focus on recordkeeping isn’t going away.
2023 was an eventful year for digital communications governance. Hundreds of millions in additional fines were imposed in the U.S., with the regulatory focus expanding from banks to include broker-dealers, investment advisers and credit rating agencies. The U.S. wasn’t alone with the UK regulator sanctioning a bank and its energy regulator fining a firm for failing to capture trading communications.
Co-author: Matt Lehman, Industry Principal, Financial Services, RingCentral
The results are in
Theta Lake is delighted to unveil its 2023/24 Digital Communications Governance, Compliance and Security Report. In its fifth year, this unique industry report provides an unparalleled insight into not only how modern unified communication tools are being used in practice and the challenges faced by firms in a unified communication and collaboration (UCC) powered work environment, but also current good and better approaches to managing compliance and security challenges.
UCX Europe is fast approaching and we’re excited to be a sponsor this year.
At Theta Lake we’re always looking ahead. With two days jam packed of topical panels and presentations, we've put together an agenda to help take the guesswork out of where to focus your attention. We hope it helps and can’t wait to see you there!
At a Glance
Both the SECand FINRAhave announced their examination priorities for 2023 giving investment advisers and broker dealers important insight into the areas to include in their compliance monitoring plans. For those tasked with maintaining compliance, security and data privacy across an organization’s unified communications there are specific areas to focus on to ensure the continuing deployment and use of platforms meet regulatory expectations, including:
Theta Lake has published its fourth annual survey report on modern communications compliance and security, highlighting the complex challenges faced by those tasked with maintaining compliance, security and data privacy. The report is based on the views and experiences of more than 500 compliance and security professionals from the heavily-regulated financial services, healthcare and government sectors across the U.S., the U.K. and Canada. It provides a snapshot of how communication platforms are being used and the issues organizations are struggling with, enabling them to benchmark their own practices and expectations against the wider industry, identifying any gaps or areas of exposure they may have.
How to Comply With the New CMS Communications and Marketing Requirements for Medicare Advantage and Part D Conversations
New recording, disclosure, and compliance rules
New electronic communications recording, disclosure, and oversight rules from the Centers for Medicare &Medicaid Services (“CMS”), effective 1 October 2022, highlight the heightened scrutiny around the sale of complex healthcare products, to promote transparency and protect consumers. In a digital age where prospects are bombarded with telemarketing calls, online advertising, social media, and promotions from celebrities and influencers, it’s more important than ever that they receive accurate information about sophisticated products. Clarity is particularly critical when it relates to the purchase of essential healthcare services.
The new CMS rules can be viewed as part of a broader global trend toward increased disclosure for complex healthcare, financial, or insurance products directly marketed to customers. Complaints about misleading advertising and sales of Medicare Advantage (“MA”) plans and Part D were the key catalyst for the CMS regulatory updates. In the one year period between 2020 and 2021 the number of complaints submitted to CMS soared from less than 16,000 to over 39,000 – a staggering increase.
The last two years have brought tremendous change, forcing us all to adapt and adopt technology, processes, and initiatives to stay connected virtually in an era where live interaction has been mostly restricted. The communication and collaboration market was front and center in making this possible.
Collaboration tools like Microsoft Teams, Zoom and Webex Teams, RingCentral and Slack have become integral to how we work. With multiple ways to communicate and collaborate they’re vital for keeping workforces and customers connected whether remote, hybrid or office based. And with less and less physical in-person interaction, users are making use of the rich features to liaise and share information. Not least by adding personality and emotion with emojis, reactions and GIFs. But modern communications create compliance challenges when it comes to providing evidence and proof that is so often required for regulatory, HR, litigation or complaints resolution issues.