Preparing for fast-turn regulatory requests using digital communications software involves shifting from reactive, manual documentation to proactive, AI-enabled, and centralized digital governance.
Unmonitored digital communications violations have cost 16 major financial firms approximately $1.8 billion over two years, according to Finance Magnates. The penalties were part of a massive enforcement sweep initiated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Their severity highlighted the need for more effective monitoring of informal communication channels such as chat apps, which also fall within the same regulatory scope as formal communication methods.
Regulatory rules often require firms to respond to fast-turn supervisory requests, or urgent demands for chat, voice, and video records. Specialized digital communications software can help ensure your records are in order while allowing you to respond promptly. The software's built-in tools provide a data collection platform that facilitates internal investigations and enables the execution of legal holds to meet compliance, security, and legal needs.
The SEC and FINRA require businesses to retain, supervise, and archive all communications, regardless of device, platform, or status. These regulatory standards also extend to digital platforms such as Teams and Zoom, specifically MiFID II for financial firms and HIPAA for healthcare.
There is also rising scrutiny of AI summaries, emojis, and off-channel apps by regulators. You can ensure compliance and avoid hefty fines by archiving these conversations. Enforcing policies that distinguish between channels used for personal and business communications can also help.
There are over 33 million businesses in the US, and nearly all are subject to some form of regulatory oversight, and short-deadline requests can create intense pressure. Some challenges you may face with fast-turn requests include:
Many firms also experience technological limitations due to legacy systems that don't communicate with one another, slowing the compilation process. Implementing regulatory technology (RegTech) provides automated reporting and more effective data management.
According to the US Chamber of Commerce, regulatory compliance requirements negatively impact the growth of 51% of small businesses, with almost 47% spending too much time ensuring they're compliant. Digital communications software can play a critical role in fast-turn regulatory requests, as regulatory tech tools facilitate:
By leveraging regulatory compliance tools, you can significantly reduce the time, cost, and risk of investigations, allowing you to fulfill information requests far more efficiently.
Regulatory response strategies for fast-turn requests require a combination of proactive planning, established rapid response protocols, and robust, well-organized documentation to ensure compliance with regulatory requirements. It should involve:
After implementing digital compliance solutions, you should set up specialized teams, maintain audit-ready systems, and engage with regulators early to anticipate potential supervisory request management issues.
Digital communication software designed as an effective data collection platform can collect, index, and archive formal and informal communications, enabling rapid retrieval and reporting for regulatory audits and investigations. For your platform to achieve this, it should have the following:
The system must capture all communications in their original format and should have search capabilities across all channels. This should include full message threads, such as emojis, GIFs, reactions, file shares, and message edits/deletions to understand the full context of a conversation.
The AI used should understand context, sentiment, and nuances to identify potential misconduct. When automated flagging and prioritization are incorporated, they allow compliance teams to focus on urgent threats first, while image and video analysis help detect, search, and monitor text within images, screenshots, and shared documents.
The software should instantly lock, preserve, and export relevant data on specific user accounts to prevent deletion or modification during an active investigation. The use of tools that generate pre-built, customizable reports can show who reviewed what, when, and how alerts were closed, while automated workflows can help escalate potential breaches.
Write Once, Read Many (WORM) storage ensures records can't be changed, which is essential for regulatory retention requirements. Role-based access control can restrict access to sensitive, confidential, or personally identifiable information (PII) to authorized personnel only.
Five examples of digital communication include email for formal correspondence, instant messaging apps for quick messages, such as WhatsApp, and videoconferencing using cloud-based platforms like Zoom. Social media sites and VoIP/internet calls are also forms of digital communication. All involve the transmission of information electronically using digital signals.
The tools necessary for delivering regulatory content effectively include automated, AI-powered systems that track, manage, and distribute compliance information in real-time, such as regulatory change management (RCM) platforms, governance, risk, and compliance (GRC) software, and automated document management systems.
A regulatory compliance checklist is a structured, actionable document used by organizations to ensure they adhere to relevant laws, industry standards, and ethical practices. It acts as a guide to verify compliance, avoid legal penalties, reduce risks, and streamline operational, safety, or data privacy obligations.
In an environment where regulatory compliance has become stringent, proactive software prep can ensure you avoid high-dollar penalties. Your digital communications software should be an effective data collection platform that facilitates internal investigations while enabling the execution of legal holds to meet compliance, security, and legal standards.
This is exactly the type of functionality that Onna's AI-powered data management solution provides. Our platform will centralize your data, allowing you to search and manage formal and informal communications across multiple applications in real-time. Take the first step to hassle-free compliance by scheduling a demo today.