Jessica Reece Shares Insight Into SEC Regulation of Electronic Communications

In The News
March 23, 2023

Regulators continue to demand asset managers explain their handling of text messages and other electronic communications. Compliance experts suggest fund boards do the same.  

Asset management partner Jessica Reece spoke with BoardIQ on the matter, saying, “I advise boards to think carefully about what recordkeeping and communication policies look like and make sure they comply with those, because I do think we are going to see more focus from the SEC on what was the board process. And when they’re asking those questions, they start to look at board communications…it’s something we’re on alert about.”

Fund directors often communicate using various functions within electronic board books, which come with unique security factors. Learning how to use the portal is often part of new director onboarding, Jessica said, and should also be updated as the technology changes. “This is about cyber risk, cybersecurity, recordkeeping,” she said, “As technology evolves faster than we can write our policies, we need to be vigilant” about any changes.