An Introduction to WeChat Compliance for FINRA-Regulated Firms

WeChat is a globally popular instant messaging channel that allows brands to communicate efficiently with their clients. Moreover, this enables them to market their products and services and establish their brand identity. Its versatility and unique features make it a valuable tool for enhancing business operations.

However, using WeChat for client communications can be a compliance challenge for financial firms regulated by the Financial Industry Regulatory Authority (FINRA). WeChat compliance with FINRA standards have always been an issue for many firms, resulting in them getting hefty fines. So, here are some things FINRA-regulated firms need to know about WeChat compliance:

If your firm plans to use WeChat to communicate with clients, you must first register your account with FINRA. This requirement applies to all social media accounts, including WeChat, that your firm uses to communicate with clients. This registration process is necessary for FINRA to be able to monitor your firm’s social media activities and ensure that you are complying with their rules.

FINRA Rule 4511 requires firms to keep records of all client communication for at least three years. This includes all messages sent through WeChat. Your firm must have a system to capture, archive, and retrieve WeChat communications. This record-keeping requirement also applies to personal devices that your employees use to communicate with clients through WeChat.

All employees who use WeChat for business purposes must receive training on WeChat compliance. They must also be supervised to ensure they follow your firm’s policies and procedures for using WeChat. Your firm should have policies to address issues such as acceptable use, content, and handling client complaints through WeChat.

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