Field Notice 2023-22
September 20, 2023
ESI offers a text messaging solution to all field Registered Representatives (“RR”), registered administrative staff (“RA”), Investment Adviser Representatives (“IAR”), and non-registered fingerprinted persons (“NRF”) who use texting for business communications through CellTrust. All registered persons (i.e. RRs, IARs, and RAs) must register with CellTrust within 30 days of their affiliation with ESI. In accordance with SEC and FINRA rules, all electronic communications, including text messages, are required to be archived and reviewed by the Firm. To comply, RRs, RAs, IARs, and NRFs who use text messaging for business-related[1] communications must download, activate and utilize CellTrust. Please note that personal text messaging services remain prohibited for business use.
The CellTrust application must be kept current by logging into it at least monthly. Failure to do so will cause CellTrust to be made inactive. If CellTrust is inactive, clients could text but the message will not be received, with no delivery failure message going back to the sender.
Marketing And Advertising Disclosure
Going forward, all mention of a cell phone number on advertising materials (i.e. business cards, email signatures, web pages, etc.) will indicate whether or not texting is allowed. A personal cell phone number must indicate “Voice-Only.” CellTrust numbers will not require that disclosure. Prior to reprint, any hard copy materials must be submitted to the Advertising Guidance Team for review and approval. Digital materials should be submitted for the addition and approval of the new disclosure.
How Does It Work?
A mobile business number (“MBN”) can be used for both voice and text, or for text only. You may have a new MBN assigned to you based on your preferred area code and exchange (when possible), OR you may choose to use your existing landline number. To use an existing landline, you must currently have a business phone number that connects to a landline (versus a cell phone).
The CellTrust MBN or landline must be used to send and receive business text messages only. Please do not send personal text messages through the CellTrust MBN.
Texts sent to an outside user (i.e. a non-CellTrust user) are not secure (i.e. encrypted). Therefore:
- Text messages must not contain personally identifiable information (“PII”) or any other data that requires encryption; and
- Text messages should never be used to obtain a customer’s personal or financial information.
When May I Start Using Celltrust?
As noted above, you may text clients once you are approved and have completed the setup of the CellTrust app. However, you may not text to any associated person (e.g. another RR, RA, NRF, or home office employee) until:
- You have completed the installation and activation of CellTrust
AND
The associated person has also completed the setup process (Note: If an affiliated person has registered and is active with CellTrust, you will be able to locate them in the CellTrust Directory. If they don’t appear in the Directory, they are not active with CellTrust.)
Texting Prohibitions
Activities that are not allowed via text messaging include, but are not limited to:
- Sending or receiving Personally Identifiable Information (PII) such as birthdates, account numbers, social security numbers or any other such information;
- Sending or receiving account statements, applications, copies of drivers’ licenses or documents that include account numbers or sensitive information;
- Sending ‘Internal Use Only’ and corporate documents to other ESI associates;
- Business solicitations;
- Sending advertising or marketing material;
- Use of automated services to send bulk messages;
- Sending pictures or videos;
- Sending profanity or any other inappropriate language or images;
- Cold texting. Similar to cold calling, you must adhere to the Telephone Consumer Protection Act. Please review the Telephone Solicitation and Telemarketing Guidelines for details.
Costs
For RRs and IARs, the cost for CellTrust is covered by the ESI affiliation fee; for RAs, it’s covered by the administrative fee. If an NRF has a need to text for business purposes, which includes texting within the agency and/or to a RR, CellTrust is available to office staff for a fee of $25/month, paid by the RR.
Frequently Asked Questions:
Q1: I don’t text my clients. Why do I need to use CellTrust?
A1. Business-related communication encompasses more than just securities-related business messages sent to clients. It also includes investment advisory, insurance, and all business-related activities sent to/from clients, potential clients, vendors, home office employees, branch office staff, or other representatives.
Q2: I don’t have a smartphone. May I have an exemption? / Do I still need to use CellTrust?
A2: Yes. You can meet the requirement by logging into the desktop version of the app. You will still need to log in at least monthly to keep the account active.
Q3: What should I do if a client texts me Personally Identifiable Information (PII)?
A3: You can reply to the text, using the same thread, and remind them that 1) they should not send you PII via text message, and 2) they should utilize a secure email to send you any such information.
Q4: My clients sent a text to my personal phone number. How should I respond?
A4: Do not communicate with them from your personal device. Respond via email, or from your CellTrust number that you can only receive messages on that channel.
Q5: Do my NRFs need CellTrust?
A5: All affiliated individuals who text for business purposes must use the Firm’s approved platform. ESI will deduct the $25/month fee directly from the employing RR via commission deduction, but RRs may, at their discretion, pass the fee on to their NRF.
Questions
For technical issues, please contact the Help Desk at 802-229-3000. For questions regarding this Field Notice, please contact ESI Compliance at 800-344-7437 or by email at ESIElectroniccommunicatons@nationallife.com.
TC136407(0923)1
[1] Includes anything relating to securities, investment advisory, all financial service-related activities including insurance, and all investment-related activities sent to/from clients, potential clients, vendors, home office employees, branch office administrative staff, or other RRs.
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