Text Messaging & Regulatory Compliance:

What Our Clients Need to Know

At Edwards & Company, safeguarding your financial future goes hand-in-hand with protecting your privacy and maintaining absolute regulatory integrity.

Recently, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have taken an incredibly strict stance against "off-channel" communications. Regulatory bodies have penalized financial firms billions of dollars globally for failing to monitor, record, and archive business-related text messages and applications (such as WhatsApp).

To ensure full compliance with these federal mandates, Edwards & Company requires that all business-related text messages be sent and received strictly via our approved, company-issued, and archived messaging application at 504-315-3477.

Why can't I text your regular office number?

Our main office line is strictly designated for voice communications and is not authorized or routed through our mandatory compliance archiving system. Even if a text message appears to go through from your device, it cannot be captured by our network. Sending a business-related text to our main office line or a representative's personal number places the firm in direct violation of federal record-keeping laws and subjects us to substantial fines.

If you choose to communicate via text, please save 504-315-3477 in your contacts as "Edwards & Company (Text Only)."

The Rules That Govern Our Policy

FINRA mandates that all business-related electronic communications be supervised, approved, and retained. Below are the key regulatory pillars that dictate our texting policy:

1. Supervision & Public Communication

FINRA Rule 3110 (Supervision): Firms must maintain written procedures to supervise all business-related correspondence and communications. This is designed to prevent unmonitored "off-channel" advice or communications.
FINRA Rule 2210 (Communications with the Public): This rule governs how financial firms interact with the public across all media, ensuring all communications are fair, balanced, and verified.

2. Record Retention

FINRA Rule 4511 (Books and Records): This rule requires firms to make and preserve books and records as required under FINRA rules, the Exchange Act, and SEC rules. Under this rule, books and records must be preserved for at least six years unless otherwise specified.
SEC Rule 17a-4: Requires that business-related communications be preserved for at least three years, with the first two years kept in an easily accessible place.

3. The Content Dictates the Law (Not the Device)

A common misconception is that using a personal phone or an unapproved line exempts a message from these rules. Regulatory guidance clarifies that content is what matters:

FINRA Regulatory Notice 11-39: This notice explicitly states that whether a communication must be archived depends strictly on the facts and circumstances of the content, not the technology or device used. It applies whether a representative uses a firm-issued device or a personal device. If it pertains to business, it must be retained, retrievable, and supervised.
FINRA Regulatory Notice 17-18: This notice specifically addresses text messaging and chat applications. It reiterates that if a firm intends to permit text communications regarding its business, it must first ensure it can retain records of those communications.

Our Commitment to You

If a representative receives a text on an unapproved line, they are required by compliance protocols to redirect you to our approved text line or request to move the conversation to an authorized email or telephone call.

We appreciate your cooperation and understanding as we uphold the highest standard of regulatory compliance and data security.

If you have any questions regarding these rules, please review the official FINRA Digital Communication Report or contact our office directly.