A new use case in the annual refresh of Cisco Portfolio Explorer for financial services is e-communication compliance. This hot button issue is in the news it seems almost weekly. Financial institutions, mainly Wall Street firms, have been heavily fined for using unauthorized communication channels and not recording these communications.
The punitive financial damage to these Wall Street firms so far has been over $2.5 billion dollars. More fines are likely to come and to a wider base of financial institutions as regulatory bodies are just getting started in enforcement in this age of hybrid work and plethora of communication channels.
Communication compliance regulations
Compliance requirements for communications in financial services has always been very strict and certain sub verticals such as capital markets, trading and investing and insurance even stricter. Fast forward to today, and the financial services sector faces more regulations than ever. This is due to different regulatory bodies but also district, state, national, zonal and even industry agencies. With the vast array of digital communication channels, mobile phones, text and chat, video, social media, it is overwhelming.
The most common compliance laws fall into two camps:
- Surveillance and supervision. These laws govern internal policies, review, audit trail, retention and internal monitoring.
- Digital communications. These deal with content, audiences and communication channels.