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Eliza Fromberg was quoted in the article, "Personal Messaging Channels Pose Compliance Cybersecurity Risks," published by FundFire. The article discusses asset management firms facing heightened risks associated with employees using non-compliant communication channels for work, which can lead to regulatory consequences.
Recently, the Securities and Exchange Commissions (SEC) has warned that the new remote-work regime, spurred by the COVID-19 pandemic, could pose new operational and technological challenges. Fromberg explains that though it is difficult to always stay one step ahead of changing communication methods, firms are becoming increasingly skilled at using technology to monitor various channels.
"Technology has advanced, and firms can use vendors that capture text messages," Fromberg says. "As long as the technology exists, and the firm can capture the communication and retain them to be produced in SEC exams, it's certainly in the firm's best interest to allow the investment advisory employees to communicate with clients."
