%20(1).avif)
.avif)
.jpg)
If you’re a broker-dealer, you already know that regulatory compliance is a must.
Take Velox Clearing, for example.
The brokerage firm was fined $1.3 million by the Financial Industry Regulatory Authority (FINRA) for failing to monitor business communications on unapproved messaging platforms.
Under FINRA Rule 3170—the “Taping Rule”—certain firms must record and retain all telemarketing-related conversations. Regulators want complete, tamper-proof records of business calls, especially when high-volume outreach is involved.
So, when a firm falls short, the consequences are more than financial. Enforcement actions raise questions about supervision, internal controls, and leadership oversight.
This case study examines how a regional broker-dealer reduced compliance review time by 62% after deploying iPlum’s automated mobile recording solution to meet FINRA Rule 3170 requirements.
Table of Contents
1. About NorthRiver Securities
6. iPlum — The best business phone system for financial services
About NorthRiver Securities
NorthRiver Securities is a regional broker-dealer with 15 registered representatives.
The firm generates a significant portion of new business through outbound telemarketing campaigns and follow-up calls. Because of this activity, it was formally designated a “taping firm” under FINRA Rule 3170.
The designation required NorthRiver to record and retain all relevant telephone conversations between its registered representatives and both existing and potential clients.
On paper, the firm had a recording system in place. In practice, however, the infrastructure wasn’t working.
Advisors relied heavily on personal mobile phones to respond quickly to prospects and maintain momentum during sales cycles.
The challenge
Before, iPlum NorthRiver’s communication system had four major weaknesses:
- Call recording had to be manually initiated
- Recording only worked on office-based hardware
- Mobile calls were not captured
- Audit documentation was inconsistent
Compliance officers discovered that many representatives were conducting prospect follow-ups on their personal mobile devices to stay responsive. And, these calls were not recorded.
The system created a direct conflict with the requirements of FINRA Rule 3170.
The compliance department was spending more than 15 hours per week reviewing logs, reconciling recordings, and confirming that required calls were captured.
Even then, there were glaring inconsistencies.
An internal audit estimated that missed recordings and incomplete logs exposed the firm to potential enforcement penalties exceeding $1 million, based on comparable FINRA actions.
Beyond regulatory risk, the operational strain was also mounting.
Manual oversight consumed valuable compliance resources. The firm was also paying approximately $5,000 per year to maintain its legacy hardware-based recording system, despite its limitations.
NorthRiver needed a system that would:
- Automatically record every relevant call
- Capture mobile communications
- Provide tamper-proof archival storage
- Reduce manual compliance review time
And it needed to work without disrupting how advisors operated day to day.
The solution
After evaluating several compliance recording platforms, NorthRiver selected iPlum’s financial compliance line solution for its automation, mobility, and regulatory alignment.
Here’s how iPlum addressed the firm’s compliance challenges.
1. Automatic bidirectional mobile call recording
The most critical improvement was automation.
With iPlum, all calls made through the assigned business line were automatically recorded. There was no manual “start” button and no reliance on desk hardware. Representatives could now conduct calls from their mobile devices while ensuring 100% recording capture.
This eliminated the single biggest compliance vulnerability—human error.
2. Built-in dual-party consent greeting
To address wiretapping and consent requirements across multiple states, iPlum allowed the firm to enable automated disclosure greetings at the start of every recorded call.
The announcement ensured that clients were notified consistently and that recordings were legally compliant across jurisdictions.
This removed ambiguity and standardized call transparency across all 48 registered reps.
3. 10-year WORM-compliant archiving
All recorded calls were now stored in a non-rewriteable, non-erasable (WORM) format. Each recording included:
- Timestamp
- User ID
- Call metadata
- Secure audit trail
Compliance officers could instantly search, retrieve, and export recordings through a centralized cloud console. Now, there was complete traceability aligned with FINRA retention requirements.
The results
After deploying iPlum, NorthRiver Securities experienced measurable operational and financial improvements.
Below is a table summarizing the results:
With iPlum, NorthRiver was able to achieve the following:
- Recording compliance improved to 100% automation. There were no missed recordings, manual activation, or gaps in documentation.
- Compliance labor reduced from 15 hours per week to 5.7 hours per week: That 62% reduction translated to approximately 480 hours saved annually.
- At an average compliance labor cost of $30 per hour, the firm saved approximately $14,450 per year in administrative overhead.
- Legacy hardware expenses were eliminated. Decommissioning the desk-based recording infrastructure removed $5,000 in annual telecom and maintenance costs.
- FINRA audit passed with zero mobile communication findings. For the first time since being designated a taping firm, NorthRiver completed a regulatory review without corrective action related to call recording.
As NorthRiver’s Chief Compliance Officer noted:
“Before iPlum, we were constantly verifying whether calls were recorded. Now, we know for sure they are. That confidence alone changed how we operate.”
The combined savings from labor reductions and hardware elimination totaled $19,500 annually, not to mention the avoided seven-figure enforcement exposure.
Why it worked
NorthRiver’s transformation was driven by alignment between regulatory demands and operational reality.
Here’s why the deployment succeeded:
- Automation eliminated human error: Manual recording requirements were the root cause of missed documentation. Automatic capture solved it permanently.
- Mobile-first compliance matched real advisor behavior: Reps were already using mobile devices. iPlum simply made those calls compliant.
- Centralized oversight improved supervision: The compliance console provided instant visibility into call archives, reducing investigative delays.
- Cost efficiency replaced outdated infrastructure: The BYOD-compatible model eliminated unnecessary hardware expenses while improving coverage.
When compliance systems align with how financial professionals actually work, regulatory readiness becomes sustainable.
iPlum — The best business phone system for financial services
NorthRiver Securities’ experience demonstrates that compliance modernization doesn’t require expanding headcount or investing in expensive infrastructure.
By implementing automated mobile call recording, WORM-compliant archiving, and centralized oversight, the firm achieved:
- 100% recording compliance
- 62% reduction in compliance review time
- Over $19,000 in annual cost savings
- Zero mobile communication findings during audit and much more.
iPlum provides broker-dealers with automatic call recording, dual-party consent announcements, secure 10-year retention, and mobile-first compliance built specifically for FINRA-regulated environments.
If your firm operates under the Taping Rule or faces increasing scrutiny over off-channel communication, iPlum helps you turn compliance from a liability into a measurable operational advantage.
Get iPlum’s financial compliance line
