In June reports emerged that JPMorgan Chase & Co. was scrapping voicemail in its consumer bank division. At the time, many interpreted the decision as simply a cost-cutting measure. Some analysts saw it as “penny-pinching,” noting that the savings would likely prove to be meager. These reports, however, are missing the point. The cost of voicemail is no longer just a recurring payment to a phone company. With new regulations around data storage requiring financial institutions to preserve their communications data—including voicemail—for long periods of time, the calculus is rapidly changing. And while it’s true these regulations haven’t extended to consumer banks yet, limiting how much data a business unit generates remains a prudent move for a number of reasons.
For example, investment banks whose trading desks are currently using voicemail must be cognizant of Section 731 of the Dodd-Frank Act, which compels firms to maintain daily trading records as required by the Commodity Futures Trading Commission (CFTC). In its response to that section, the CFTC promulgated rule 23.202, requiring firms to maintain pre-execution records of “all oral and written communications provided or received concerning quotes, solicitations, bids, offers, instructions, trading and prices” that lead to the execution of a swap, cash or forward transaction “whether communicated by telephone, voicemail, facsimile, instant messaging, chat rooms, electronic mail, mobile device, or other digital or electronic media.” [Emphasis added.]
