Dodd-Frank Act and Compliance Recording

Organizations in the Financial Compliance industry need to comply with all Call Recording and record-keeping requirements or face fines and potential loss of business. While the Dodd-Frank Act includes regulations that affect a wide range of Financial Compliance organizations activities, those pertinent to Voice Recording are among the most stringent and important.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act or DFA) was passed to promote financial stability by improving accountability and transparency amongst Financial Organizations. DFA introduced extensive record-keeping regulations that significantly changed the requirements for federal financial regulatory agencies and almost all companies in the Financial Compliance industry. 

According to former Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler, "The goal of the law is to:

  • Bring public market transparency and the benefits of competition to the swaps marketplace;
  • Protect against Wall Street’s risks by bringing standardized swaps into centralized clearing; and
  • Ensure that swap dealers and major swap participants are specifically regulated for their swap activity.”

The key legislative requirements of DFA relevant to Call Recording are:

  • All communications relating to pre-execution trade information must be recorded completely and accurately, including telephone, voicemail, instant messaging, chats, email, mobile, etc.
  • Records need to be uniformly time stamped
    • A record of the date and time, to the nearest minute, must be on every record
  • Trading records need to be identifiable and searchable by transaction
    • All records must be maintained in a manner that is easily searchable
    • Records must be available for trade reconstruction
  • All records must be stored securely and readily accessible
    • Records need to be stored at the principle place of business or such other principle office
    • Records must be kept throughout the duration of the transaction, and then retained for up to five years
      • Within the first two years, these records must be readily accessible

These regulations and requirements can be overwhelming and difficult to interpret. Oftentimes, it’s crucial for Financial Compliance organizations to implement or update their Voice Recording technology to ensure compliance.

As vendor-agnostic industry leaders, we pride ourselves on our consultative approach, wide range of services, and unparalleled support. Regardless of your current status, we have the technology, industry knowledge, and services required to help your organization comply with these complicated federal regulations.

For more information on compliance recording and the Dodd-Frank Act, the following resources are available for further clarification:

  • Compliance Recording White Paper: An educational White Paper focusing on the most important aspects of a Call Recording solution in compliance environments. Co-written by Wilmac’s Manager of Presales Support, Mark Huber.

 


Tags: Compliance, Dodd-Frank Act, Financial Compliance

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