In today’s fast-paced digital world, SMS has become an indispensable tool for communication, especially in financial services where timely and secure messaging is crucial. However, the regulatory landscape governing SMS communications is complex and stringent. 

The Text Compliance Challenge

SMS, or Short Message Service, has evolved significantly over the years. From simple text messages, it now includes multimedia content like images, emojis, and videos. This expansion means that financial services firms use SMS not only for casual communications but also for critical business interactions. But here’s the catch: regulatory bodies in the U.S., UK, and Canada have strict rules about capturing, retaining, and supervising these communications.

Regulations such as SEC 17a-4, FINRA 2210, and FCA SYSC 10A.1.6 mandate that firms must retain records of business-related communications, including SMS. These rules ensure that all relevant communications are preserved for compliance reviews and audits. Non-compliance can lead to hefty fines, as seen in recent enforcement actions where firms were fined over $3 billion for failing to maintain and preserve electronic communications.

Theta Lake Partners with 1GLOBAL to Alleviate SMS Compliance Challenges

1GLOBAL specializes in global telecom solutions that allow customers to stay connected anytime, anywhere, with any device, on one global network. Their SMS service is available in over 220 countries, and in cases where regulated companies and users are utilizing this service, the need to compliantly capture, archive and surveil these communications can be a massive challenge for Heads of Unified Communications and Compliance IT.  

Theta Lake seamlessly integrates with 1GLOBAL to capture SMS communications in their original format (for all or only regulated users), and then archive them in the customers existing archiving systems or in Theta Lake’s SEC-17a-4 compliant environment. Theta Lake customers can then search and review communications, and take action to avoid risk.

Real-World Scenarios

To illustrate, consider a financial firm where both regulated and non-regulated employees need to communicate about business matters. With the 1GLOBAL and Theta Lake integration, SMS communications from all employees can be captured and archived, ensuring no crucial information slips through the cracks. This is particularly important for firms with mixed user bases, where some employees are subject to regulatory supervision while others are not.

For example, if board members are discussing sensitive financial matters via SMS, capturing these communications is crucial for compliance. Similarly, if traders are using SMS to discuss market transactions, every message must be captured and supervised to meet regulatory standards.

Learn more about Theta Lake’s Digital Communications Governance & Archiving (DCGA) capabilities for SMS/text and mobile.