Q: During the pandemic I’ve been working from home like most of my co-workers. Instead of having in-person meetings with clients, we’ve been using videoconferencing. I know that if I was meeting these clients in person I wouldn’t have to keep any documents but when I’m having a videoconference, is there any requirement that I save a recording of the call?
A: FINRA has a wealth of information on its website dealing with issues that have arisen due to the COVID-19 pandemic.
As to your specific question, FINRA has said that members must still supervise registered representatives’ live meetings that occur through videoconferences just as they would via traditional phone calls.
The system of supervision must, as always, be “reasonably designed to achieve compliance with applicable securities laws and regulation and FINRA rules.”
With that understanding, unless your firm is required to record phone calls under FINRA Rule 3170 — and member firms are not normally required to — the same would be true for videoconferences.
However, in its FAQ concerning Regulatory Relief Due to the Coronavirus Pandemic, FINRA notes that “if a registered representative during the video or audio conference uses the chat or instant messaging feature of the platform or presents slides or other written (including electronic) communications, the member must keep records of these written communications in accordance with Securities Exchange Act Rule 17a-4 and FINRA Rules … and their content must be consistent with applicable standards such as FINRA Rule 2210 (Communications with the Public) and 3110(b) (Supervision).”
Additionally, keep in mind that FINRA also notes that “depending on the nature and number of persons attending the video meeting, these written communications may be [considered to be] correspondence, retail communications (i.e., advertisements) or institutional communications, and must be supervised as such.”
Finally, it’s worth noting that if you do decide to record a call — regardless of whether it’s video or audio — there could be ramifications in connection with regulatory actions or lawsuits with regard to records requests or subpoenas. So make sure you know your firm’s policies and are in compliance with them.
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