Amidst an unprecedented flurry of enforcement actions and fines levied by the SEC for off-channel communication violations, some investment advisers have raised concerns that emojis and video conferencing platforms will be the next frontier for regulatory scrutiny. Unfortunately, the current suite of technology solutions for monitoring, capturing, and retaining emojis and video communications remains imperfect. There are, however, reasons for optimism, both in terms of approaches compliance professionals can take to mitigate those potential risks and the forecast for how regulators might treat those communication mediums going forward. This second article in a two-part series identifies challenges that emojis and video communications present for advisers attempting to record, retain and monitor those forms of technology, and suggests how advisers can bolster their corresponding compliance efforts. The first article offered an overview of the SEC’s ongoing scrutiny of off-channel communications to date, and contemplated why emojis and video communications may be areas targeted by the Commission and other regulators in the future based on recent comments and legal developments. See our three-part series on electronic communications: “Current Technological Landscape and Relevant Regulatory Measures” (Jul. 13, 2021); “Useful Training Techniques and Policies and Procedures to Adopt” (Jul. 20, 2021); and “Using Third Parties for Compliance, Mitigating Social Media Risks and Fulfilling Document Requests” (Jul. 27, 2021).
By Jonathan Shazar, Private Equity Law Report
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