Regulators have devoted significant attention in recent years to the use of “off-channel” communications by broker-dealers and investment advisers. The SEC alone has brought more than 100 settled cases since 2021, with aggregate penalties exceeding $2 billion, largely involving unapproved platforms such as WhatsApp, iMessage, and personal email.

On August 13, 2025, FINRA announced a Letter of Acceptance, Waiver, and Consent (AWC) that extends this focus in an important way. Unlike prior matters, the case did not involve the use of unauthorized applications. Instead, FINRA sanctioned a firm for failing to reasonably supervise an approved instant-messaging platform. The settlement underscores that approval of a system does not absolve firms of supervisory responsibility.

The Enforcement Ac

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