Financial Services Regulations FAQ

Does MultiLine support TCPA Opt-In/Opt-Out? 

Yes. We understand that in highly regulated industries – there are often requirements to capture client opt-in or for the client to enroll in order to text with their advisor. 

MultiLine renders this process easy, texting enrollment is built-in with our Opt-In feature. It’s a simple process. When the advisor first texts a client – the client will receive a message which allows them to either opt-in to texting by replying “YES” or decline the invitation by replying “STOP” to the text conversation. When they reply “YES” – both the advisor and the client receive an auto-generated message informing of the client’s decision – and this message is recorded in the Portal/Archival System/Salesforce – for easy compliance verification. At this point – the conversation can resume as it normally might.

Is MultiLine suitable for FINRA and SEC compliance?

Yes. Despite firms’ resistance to monitoring text communications, the reality is the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) require that electronic communications used for business purposes are archived and supervised—including text messages. 

Key points from the Notice include: 

  • Recordkeeping: Firms are reminded of their obligation to keep records of business communications under SEC Rule 17a-4(b)(4). Also, firms must train and educate their advisors regarding the distinction between business and personal communications, and the requirements to retain, supervise, and produce business communications. 
  • Text messaging: Firms that communicate or allow advisors to communicate through text messaging or chat services for business purposes must retain records of those communications, in compliance with SEC and FINRA rules. 

MultiLine offers built-in capturing capabilities for all MultiLine texts at an enterprise scale. This happens automatically in the cloud and never requires end-user action. You can easily search and download all of these records in our secure Management Portal, where we can store them for a predefined period of time. 

Link to FINRA notice: https://www.finra.org/sites/default/files/notice_doc_file_ref/Regulatory-Notice-17-18.pdf

Link to SEC rules: https://www.sec.gov/files/OCIE%20Risk%20Alert%20-%20Electronic%20Messaging.pdf

Is MultiLine suitable for MiFID II and FCA COBS 8.11 compliance?

Yes, Movius MultiLine enables compliance with MiFID II and FCA COBS 11.8, including the requirement to produce all communications related to a trade upon the request of a regulator, including mobile calls and texts, no matter whether the phone is corporate or privately owned. It brings the compliance, retention, archiving and eDiscovery capabilities that banks require while easily capturing, recording, storing and analyzing mobile voice and text communications. 

Link to MiFID II: https://www.esma.europa.eu/sites/default/files/library/esma35-43-349_mifid_ii_qas_on_investor_protection_topics.pdf

Link to FCA: https://www.handbook.fca.org.uk/handbook/ICOBS/Sch/1/1.html

Is MultiLine suitable for Dodd-Frank and GLBA compliance?

Yes.  MultiLine ensures secure and private attorney/client and third-party communications to protect sensitive client data in accordance with Dodd-Frank and Gramm-Leach-Bliley Act (GLBA).

Movius Corporation assumes no liability for the accuracy or completeness of this information. Please consult with an attorney for specific information on specific rules and regulations and how they apply to your business. 

How is MultiLine data captured and how is it stored?

Built-in call and SMS recording capabilities are provided by the Movius platform to comply with regulatory requirements (FCA, MiFID II, Dodd-Frank, HIPAA) and corporate policies. 

The default behavior of the Movius platform is for voice and SMS recordings to be created as they traverse the Movius platform and stored for a period of 72 hours for customers to retrieve them for archiving purposes in their respective secure data repository solutions. 

Note that the recording is done ONLY IF the user is enabled for SMS recording or Voice recording or both Voice and SMS recording.

Access to the recordings is restricted to Admins of the Management Portal granted the designated role and the CSV offload process. No other users will have access to these recordings. 

All SMS data and Voice and SMS metadata is encrypted and stored in a text archive. All metadata recordings are encrypted using AES 256 encryption. Voice recordings are stored in raw voice format in a voice archive. 

Is MultiLine voice and text capture compatible with SIPREC technology?

Yes. If your organization needs SIPREC, we can work with you to set it up.

Movius Corporation assumes no liability for the accuracy or completeness of this information. Please consult with an attorney for specific information on specific rules and regulations and how they apply to your business.



About this Article
  • Created: 08/04/2023 3:27 pm EDT
  • Last updated: 11/14/2023 12:44 pm EST