Save your instant messages, NASD says

Information Management Journal, Sep/Oct 2003 by Swartz, Nikki

The National Association of Securities Dealers (NASD) recently told brokerage firms to monitor employees' instant messaging (IM) use the same way they do e-mail and written correspondence. In addition, it advised companies to retain copies of all instant messages between brokers and customers for at least three years, as is required for e-mail.

Unlike e-mail, the popular IM communication technology allows users to exchange messages in real-time. Financial firms have been early adopters of corporate IM products that offer archiving capabilities, but consumer IM products currently do not allow for monitoring.

If a company cannot adequately supervise employees' IM exchanges, NASD recommended it prohibit them from using the technology to communicate with customers. Jupiter Research analyst Olivier Beauvillain told PC World that the new rule could result in companies placing limits on the use of IM that are similar to restrictions that have been placed on workplace Web use.