What recordkeeping rules does FINRA require broker-dealers to follow for retaining business text messages and chat?

Broker-dealers operate under one of the more demanding recordkeeping regimes in U.S. business. When registered representatives use text messages, chat applications, or other “off-channel” communications to conduct firm business, those messages become business records that must be captured, retained, and supervised — regardless of the device or app used.

What counts as a record

The governing principle is content, not channel. If a communication relates to the firm’s business — discussing trades, recommendations, accounts, or client instructions — it is a business communication subject to retention. A message does not escape the rules simply because it was sent from a personal phone or through a consumer messaging service. Firms are expected to make and preserve records of these communications in a complete and accurate form.

Core retention obligations

FINRA’s recordkeeping framework, which incorporates federal securities recordkeeping requirements, generally calls for firms to:

• Capture and preserve business-related electronic communications, including texts and chat, so the full record is retained rather than fragments.
• Retain records for the required period — many books-and-records categories carry a multi-year retention obligation, with communications typically preserved for several years and readily accessible for an initial portion of that period.
• Store records in a non-rewriteable, non-erasable format (often described as WORM — write once, read many) so retained content cannot be altered or deleted.
• Index and produce records promptly upon regulatory request.

Supervision and policy

Beyond storage, firms must reasonably supervise these communications. That means having written policies that define approved channels, prohibit conducting business on uncaptured apps, and provide a means to monitor or review messages for compliance. Enforcement actions in recent years have focused heavily on failures to retain off-channel messaging, underscoring that an unenforced policy is not a defense.

Practical takeaways

Treat messaging as a records category, not an afterthought. Define which channels are permitted, deploy a capture method that preserves the full conversation, apply the same retention schedule you use for email, and train staff that personal-device convenience does not suspend the rules. These practices align with broader information-governance standards for authentic, reliable, and usable records.

For related guidance on building defensible schedules and disposition practices, see the retention and disposition topic hub.

Always confirm current retention periods and format requirements against the controlling FINRA and SEC rules, as specific timeframes are periodically updated.