Photo by Patrick Weissenberger
We all remember where we were when it happened. It was late 2007-early 2008, and the world as we all knew it came crashing down. People lost homes, people lost their savings, and nobody knew what could happen next. It was the first time we saw banks in jeopardy, too. Companies we thought were “too big to fail” suddenly had to close their doors for good. These were scary times and we needed change. Dodd-Frank law for mobile call recording was one of those changes.
Dodd-Frank looks to achieve higher levels of stability and transparency in the financial industry. Pulling back the curtain in this way has been a great help in helping customers avoid harmful financial advice.
The changes brought about by Dodd-Frank reform have been net positive. But, it’s been the cause of some significant changes throughout the financial industry. One of those changes has been to the way financial professionals can market to potential clients.
And that’s what we’re going to discuss today. The pivots it’s caused financial professionals to make. And how you can still market effectively in the wake of the new laws.
Let’s get going!
Details of Dodd-Frank
The full name of the law is The Dodd-Frank Wall Street Reform and Consumer Protection Act. And that’s one of its chief goals. Consumer protection.
Dodd-Frank became law in 2010. It was the flagship legislation of the Obama Administration. It’s part of their plan to overhaul the world financial system after the crash of 2008. It’s true the act was aimed mostly at America. The act took dead aim at Wall Street. One of America’s most thriving financial epicenters.
But the fact remains that we live in a global economy. This means any legislation in the financial industry will have worldwide effects. This held true with Dodd-Frank, as well.
This legislation is the biggest change we’ve had to financial legislation since the Great Depression back in the 1930s. It’s believed to be one of the crowning achievements of the Obama Administration.
Studies suggest that the laws are helping to keep the financial industry more stable and ensuring the protection of consumers. However, some believe the positive effects on the economy have been minimal.
Dodd-Frank law for mobile call recording is responsible for a lot of government reorganization. Many departments were shuffled around, or removed entirely, to increase the transparency on Wall Street.
Unnecessary organizations like the Office of Thrift Supervision are now gone from the U.S. financial framework. In addition, more responsibility was given to the organizations that could handle it.
One of the landmark moves was the creation of the Financial Stability Oversight Council and the Office of Financial Research. The purpose of these departments is to research, identify, and deal with any significant threats to financial stability in the U.S.
This major change came along with new powers given to the Federal Reserve. The idea being to change the way business works in America. Companies of all sizes are under more scrutiny since the passing of Dodd-Frank reform.
Consequently, some will say the biggest businesses received the biggest breaks. A bailout package was issued to some of the biggest institutions in the country by the Federal Reserve.
Wall Street Transparency
Regardless of how people feel when it comes to big banks and corporate executives being let off the hook, the fact remains that the reforms Dodd-Frank include are putting all companies under the microscope.
A section of the bill known as Title VII deals specifically with the transparency and stability of Wall Street professionals. The section concerns an investing technique known as “over-the-counter swaps.” This is a maneuver used by many of the biggest executives on Wall Street.
The Federal Government took a special interest in stopping these swaps. Dodd-Frank reform gave more power to the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to help them do so.
The Dodd-Frank Law For Mobile Call Recording and You
But it wasn’t just corporate executives and big board rooms who felt the changes. Dodd-Frank reform is felt down the line in many organizations. Including how companies market and prospect.
The legislation focuses heavily on consumer protection. The rules in this section changed the way professionals can market to their potential clients.
The term “financial professional” pertains to anybody buying, selling, or advising concerning financial instruments. This applies to all asset classes.
As a result, “financial professionals” make up a large number of companies. Everyone from mortgage brokers, stockbrokers, real estate agents, and financial planners could fall under the new Dodd-Frank reform.
People in these professions make their living from their phones. Phone calls, text messages, etc. are the lifeblood of their business. And Dodd-Frank aimed at cracking down on exactly those forms of communication.
As a result, financial professionals now have to be mindful of the National DNC, or Do Not Call list. Anybody on this list can pursue legal action against a financial professional who tries to contact them.
What Can We Do?
The good news is you can still market via your phone! You just have to know how to play by the rules. “Where’s the rulebook?” you ask? Well, it’s spelled out in the pages of the Dodd-Frank legislation.
One of the biggest changes Dodd-Frank spells out is call recording. To increase transparency, financial professionals are now required to record calls. They also need to keep archives of call recordings and text conversations.
This requirement applies to any third-party contractors or sub-contractors financial professionals work with, as well. As a result, you need to be vigilant. Anybody you work with, even once, can call your business into question if they’re not following the right procedures.
Notifying Call Participants
When it comes to call recording, you need to do your research. There are state laws that apply in addition to Dodd-Frank. States within the U.S. can be either “one-party” or “two-party” states.
A one-party state means that only one participant of the phone call needs to be aware the call is being recorded. However, in two-party states, both call participants need to be aware of the call recording.
There are also thirteen states in the U.S. that are “all-party” states. This means that all parties on a call need to be aware that the call is being recorded. It doesn’t matter how many people are on the call.
These all-party states are Florida, Massachusetts, Delaware, Michigan, Montana, Nevada, New Hampshire, Maryland, California, Connecticut, Washington State, Pennsylvania, and Vermont.
To this end, you should notify everyone on the call anyway. It’s easier to be cautious now than in the courtroom later.
Let iPlum Handle It
Dodd-Frank reform is here to stay. Of course, you could cause yourself more stress and headaches by worrying about the intricacies of compliance yourself.
The other option would be to let the iPlum team handle it for you.
iPlum offers a full range of products to provide financial professionals with compliant call recording and text messaging. You and your team can use iPlum as a call recording feature on a second phone line.
Call recordings and text message conversations can be easily viewed and downloaded in one place. And, the best part, is you don’t even have to change numbers!
Privacy and security aren’t an issue anymore, as well. Everything that iPlum stores and uses to help you and your team is completely encrypted.
If your team is looking to achieve compliance with Dodd-Frank reform quickly and easily, you owe it to yourself to check out iPlum’s products.
Dodd-Frank Reform in the News
In many professions, it’s easy to talk about legislative restrictions that could be dangerous to your business. However, laws like Dodd-Frank almost seem like a mythical creature. That is, until they hit close to home.
With that in mind, we thought it’d be a good idea to go over a real-life case of Dodd-Frank reform in action.
A federal circuit court in Madison, Wisconsin recently ruled in favor of consumer protection. The Consumer Financial Protection Board sued two defunct mortgage-relief companies on behalf of consumers.
Thus, it cost the company a total of 59 million dollars in damages. The ruling came down because the companies were found guilty of misrepresenting their services to consumers.
The big implication for the case was that Dodd-Frank reform can still affect companies years after the fact. The original infractions took place in 2013. This court case took place in 2017-2018.
Even though you may get away with it for a little while, it’s best to play by the rules.
There you have it! Everything you need to know about the Dodd-Frank law for mobile call recording and how it affects your business.
Furthermore, implementing Dodd-Frank reform doesn’t have to be stressful. The knowledgeable team at iPlum can help.
If you have any questions about wall street reform, or how to maintain Dodd-Frank compliance in the financial sector, contact us anytime.
We are always here to help and are more than happy to answer any of your questions.