HIPAA vs. FINRA: What iPlum Customers Need to Know

Whether you're working in healthcare or financial services, your organization is held to specific regulatory standards that dictate how sensitive data must be protected.

For many iPlum customers, the question isn’t just “Am I compliant?”, but rather: “Am I compliant with the right regulations for my industry?” That’s where understanding the difference between HIPAA and FINRA becomes essential.

These two frameworks govern different sectors, but they both require secure texting, calling, voicemail, and data retention practices that iPlum is designed to support.

What Is HIPAA?

HIPAA (Health Insurance Portability and Accountability Act) governs the handling of protected health information (PHI) in the healthcare sector. Covered entities include doctors, therapists, clinics, and anyone else who stores or transmits patient health data.

To comply with HIPAA, communication tools must include:

• End-to-end encryption for calls, texts, and voicemail
  
  
• Access controls (PINs, biometric security, device-level locking)
  
  
• Secure cloud storage (with geographic compliance where required)
  
  
• Audit logs for traceability of access and changes
  
  
• A signed Business Associate Agreement (BAA) from any third-party service handling PHI
  
  

HIPAA violations can result in fines ranging from $100 to $50,000 per incident, with maximum annual penalties exceeding $1.5 million.

What Is FINRA?

FINRA (Financial Industry Regulatory Authority) governs recordkeeping and supervision in the financial services industry, especially among broker-dealers and registered investment advisers.

If your firm sends texts or makes business calls that relate to financial advice, trades, or client instructions, you're likely required to retain and supervise that communication under FINRA rules.

FINRA-compliant communication tools must support:

• Message and call archiving for defined retention periods (typically 3–6 years)
  
  
• Searchable audit trails for compliance reviews
  
  
• Read-only record storage with no ability to modify messages
  
  
• Monitoring tools for supervisors and compliance officers
  
  

Failure to comply with FINRA regulations can lead to steep fines, sanctions, or even revocation of licenses.

Why This Matters for iPlum Customers

HIPAA and FINRA apply to very different industries, but the challenge they present is similar: how to maintain fast, mobile communication without compromising legal compliance.

Consider a therapist using iPlum to confirm appointments, send follow-up reminders, or check in with a client. If those messages contain any reference to a patient’s condition, schedule, or care plan, they qualify as protected health information (PHI) under HIPAA. Without encryption, secure storage, and a signed BAA from the provider, this seemingly routine communication becomes a compliance risk.

On the other hand, imagine a financial advisor texting with a client about a portfolio update or a time-sensitive trading decision. Even if no confidential numbers are shared, that conversation likely falls under FINRA’s rules for recordkeeping and supervision. If the message isn’t archived in an immutable, searchable format or if it can be deleted, it may violate FINRA’s electronic communications policies.

Both use cases highlight the need for a platform like iPlum that not only enables efficient texting and calling but can also be configured to support the exact compliance demands of each professional’s industry.

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How iPlum Helps Meet Both Standards

To help customers across healthcare and finance stay compliant, iPlum offers regulatory-aligned features that can be activated based on your industry or team needs. Here's how it compares:

This dual support allows organizations to tailor iPlum configurations by department, use case, or user, ensuring each message, call, or voicemail is aligned with the regulatory framework it must follow.

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Final Takeaway

HIPAA and FINRA are legal obligations that carry real consequences if ignored. If you're texting clients, patients, or team members through mobile devices, you need a platform that supports the specific rules for your industry.

With iPlum, compliance doesn’t have to be complicated. You get the flexibility of mobile communication, with the structure and safeguards that regulators demand. If you’re unsure whether your current setup meets HIPAA or FINRA standards, now is the time to reassess. 

That’s how you ensure your business is audit-ready and legally protected.