07.28.26

Will the SEC Scrap This Vague Texting Rule?

by: Melanie Waddell

The U.S. Securities and Exchange Commission (SEC) is preparing proposals to modernize recordkeeping rules for broker-dealers and investment advisors, with changes expected in October. The revisions follow SEC Chair Paul Atkins’ decision to end the agency’s crackdown on off-channel communications, which resulted in over $2.2 billion in fines. One proposal may clarify or eliminate the “business as such” recordkeeping standard, though industry experts disagree on whether removing it would weaken oversight. Advisors are also seeking clearer guidance on AI-related compliance, particularly around retaining AI-generated communications and managing risks associated with increasingly autonomous AI systems. 

Read More on Think Advisor