Financial Advisors Making Their Way Into the Modern World
Contact: Daniel D. Hill
Slowly, but apparently surely, financial advisors are finally working their way into the modern world. The slow pace of that adjustment is not to be blamed on advisors though. Regulators have been the primary bottleneck.
The rest of the world has been communicating with each other using text messages for years. Until very recently, however, financial advisors have risked compliance sanctions if they used texting to communicate with their clients. Regulators have tried to catch up with FINRA only recently issuing some guidance, which suggests texting can be used as a means of communicating with clients. Copies of all such communications though need to be retained just like any other form of written communication with a client.
The next hurdle was thus finding and implementing a means to use text messaging in a compliant manner. Fortunately, that problem is resolving itself much more quickly. Several products are available on the market already.
Without endorsing any particular product, a couple of technological solutions are getting attention in the marketplace now. Those possibilities include Redtail Technology, and another is CellTrust’s SL2 technology. Both options appear to capture, time stamp and archive text messages to clients.
Texting has been the public’s communication of choice for years, and the clients of financial advisors are no exception. Whether those clients are Millenials, Gen Y, Gen X or even Baby Boomers is irrelevant. A vast majority of all expect and prefer a quick and easy means of communicating.
Fortunately, financial advisors now have options which keep them from running afoul of their compliance obligations.