Recordkeeping rules scrutinized by SEC (ThinkAdvisor)

The SEC has indicated that it will be releasing two recordkeeping rule proposals in October to provide new guidance to firms while addressing the “business as such” requirement for retaining certain communications. It follows the current SEC’s scrutiny of how recordkeeping rules were used by the prior administration to bring off-channel communications cases on the use of texting and apps. Amy Lynch, FrontLine’s Founder and President, is featured in the ThinkAdvisor article, commenting that communications must be business-related to be subject to the rule and that most of the cases were brought as strict recordkeeping violations and were not based upon the actual content of messages. She explains that the SEC may now be looking to clarify potential content issues going forward by defining what “business as such” means in communications with the public. Expected modifications to recordkeeping rules, including those for advisers, should focus on communications and the lessons learned from the off-channel cases, Ms. Lynch adds. See ThinkAdvisor (free registration), “Will the SEC Scrap This Vague Texting Rule?”