Taping Rule
Categories: Regulations
If you’re looking for how Kim Kardashian tapes her you-know-whats (and yes, "what" could be many things here), you’re in the wrong place. If you’re looking for the FINRA taping rule...the Financial Industry Regulatory Authority Rule 3170, Tape Recording of Registered Persons by Certain Firms...you’re in the right place.
The financial regulatory body FINRA will slap a red flag on you if you have a troubled past when it comes to acknowledging and following financial regulations. The taping rule requires firms that hire these red-flagged rebels to tape all conversations between them and their customers, whether on cell phones or landlines. Taping required, period.
Similar to how some people believe police should be required to wear body cams for accountability, the taping rule provides accountability and encourages financial compliance.
So how does one end up being taped? FINRA lays down the law with the taping rule, requiring that firms, "establish, enforce and maintain special written procedures supervising the telemarketing activities of all of its registered persons, including the tape recording of conversations, if the firm has hired more than a specified percentage of registered persons from firms that meet FINRA Rule 3170’s definition of “disciplined firm.”
Basically, you might be off the hook if you’re from a firm that’s off the hook...or if the firm you’re working for now has few enough hires from the naughty firm you used to work for.
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once again for those in the back that's Financial Industry Regulatory
Authority FINRA it's kind of a yoga mantra thing because firms get FINRA'd [Woman meditating with yoga]
every day well FINRA is the private agency that
regulates exchanges and brokerage firms that are members they administer tests
and actually create them you know like these the series exams which we just [Series exams appear]
happen to have shmoop if you've got 70 to 80 spare hours and want to give them
a looksie... think about all the bad PR that sleazy financial wheeler-dealers [Financial dealers discussing matters]
got back in the 1930s before the various acts were enacted you know the 33 34 40
nobody was gonna trust "Wall Street people" unless there was a kind
of Good Housekeeping Seal of fair-and-square dealers who made sure
that the various laws and compliance things were actually upheld..Note,
importantly that it isn't the job of FINRA or well any government body to
recommend buying selling or holding any particular security because you're gonna
make money it's only their job to be sure that the letter of the law is [Letter of law appears]
followed and that that letter is presented in a way so that everyone has
fair access to relevant and similar information it's all about making a fair
and square level playing field for all without that well Manhattan would look a
lot more like Mogadishu than Manhattan [Manhattan skyline appears]