Taping Rule

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.