The Financial Industry Regulatory Authority has sent out a notice to members reminding them of the authority’s policy that prohibits them from recording FINRA calls and meetings.
Regulatory Notice 24-10 details the authority’s guidelines in this area and emphasizes that advances in technology have raised additional concerns.
The policy bans making audio or video recordings of conversations between FINRA staff and member firm personnel during meetings FINRA routinely requests as part of exams.
It was initially stated to members in NTM 00-18 in March 2000 but since then the authority notes that new technology, including cell phones and other personal devices, have recording capabilities that make it easier to capture the content of calls and meetings. More recently, the advent of artificial intelligence has provided an additional tool.
FINRA’s notice states, “Artificial intelligence (AI) and similar technology can integrate with virtual meeting applications to record audio and video and generate purportedly verbatim transcripts, capture slides or generate summaries. These technological capabilities to capture verbatim or detailed summaries of meetings and conversations raise the same concerns set out in NTM 00-18. They also introduce additional concerns. For example, audio and video recordings on cell phones and other personal devices can be easily edited or altered using built-in features or downloadable applications. Also, AI technology or virtual assistant applications might produce inaccurate transcripts.”
With this in mind, FINRA reiterated that its members may not record audio or video calls, meetings or conversations with FINRA staff in connection with exams, investigations or any other related oversight function, including use of any audio or video recording technologies that enable automated capture of the content of calls or meetings.
FINRA said it believes that making such recordings could violate Rule 2010, which states that a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.
The notice added that many state laws prohibit recording conversations without consent of both parties. FINRA said that with the exception of rare circumstances, members should not expect permission to use audio or video recording or other technologies in the context of an exam, investigation or any other related oversight function.
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