April 22, 2024

Financial firms are the worldwide economy’s significant associates. They adhere to encourage consumers to make investments, attain money loans, make payments, and save for the future. And take note that these services are swift, safe, and cheap.

The question many ponder is: What makes these financial institutions secure?

Financial Industry Regulatory Authority

The Financial Industry Regulatory Authority (FINRA) is a private American government-authorized corporation. They are the ones who guarantee America’s financial system has a powerful credibility. FINRA accomplishes such by implementing regulations.

The org has a FINRA compliance checklist that companies can use as a base’s knowledge about the latest ordinances they need to comply with, like:

Cybersecurity Checklist

This checklist covers protecting investors’ data by identifying and assessing cybersecurity threats and protecting assets from any digital intrusions.

Checklist for Organizational Modification

It is one of the most well-known blueprints where in any ownership variations made and any transferred value or merged proprietorship must be reported to FINRA. All declarations must be prim and proper and accompanied by an application for CMA, also known as Continuing Membership, using the Form CMA.

Once submitted, FINRA will perform an initial interview to guarantee the CMA is complete for them to start a meaningful review of the application.

Company Checklist for Compromised Accounts

This checklist is for situations where an unauthorized individual accessed a customer’s account. Account holders must take legal action if the account intruder contacts other customers, changes passwords or account numbers, and if it has suspicious activity.

This circumstance is where FINRA compliance chat text messaging apps are also applicable. All financial firms are one of the most reputable institutions in the worldwide economy. Thus, with the ascendancy of technological advancement, many corporations also turned to online banking.

This development can be financially risky if a financial institution does not facilitate high security. Hence, it is significant to have archiving and recordkeeping solutions available.

Securities and Exchange Commission

The difference between the Securities and Exchange Commission (SEC) from FINRA is that it is a federal agency conducted by the United States government. It is a comprehensive and authoritative regulator for financial firms.

Under SEC’s Checklist, it is highly strict when it comes to these attributes:

Rules and Regulations for SEC and Major Securities Legislation

This regulation highlights SEC’s restrictions together with the following:

  • Securities Act of 1933
  • Trust Indenture Act of 1939
  • Securities Exchange Act of 1934
  • Investment Company Act of 1940
  • Investment Advisers Act of 1940
  • Securities Investor Protection Corporation

These regulations are highly for the financial firms’ organization, conduct, ethics, information, requests, rules of practice, etc. It generalizes the financial industry’s orderliness.

SEC Form List

This database significantly encloses all the legalization, registration statements, quarterly report requirements, uniform application, custody, customer, and all system compliance and integrity qualifications.

SEC Disclosure Protocols

This disclosure guideline’s concept is for the legalization process for the following:

  • Information about filing reviews
  • CF disclosure guidance topics
  • Other staff guidance and sample comment letters
  • Staff reports

These are all that made FINRA and SEC different. Nevertheless, both organizations are the same in raising regulatory practices for the financial industry.

Despite the legislation released, numerous banking firms still fail to comply with archiving and recordkeeping. The silver lining is that companies like LeapXpert value client and company communication.

Firms like them aspire to generate software to help these financial organizations securely communicate with their clients on the world’s most utilized instant messaging application like WhatsApp.

Contact them on this link and learn more about their great ventures.