According to FINRA, Gaelin Michaela Monkman-Kotz has been assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for one month for causing her member firm to maintain incomplete books and records.

Monkman-Kotz was included on more than 4,000 messages through a social media application, some of which she sent, with various firm personnel and customers. These communications concerned the firm's business including customer trading, trade surveillance and compliance concerns, and regulatory requests.

FINRA rules require firms to capture and retain business-related communications. When representatives use unapproved communication channels like personal social media applications, the firm cannot fulfill its recordkeeping obligations or supervise the communications for potential misconduct.

The use of off-channel communications has become a significant enforcement priority for regulators. These communications can hide a variety of misconduct including unsuitable recommendations, undisclosed conflicts, and coordination of problematic trading activity.

The fact that these communications involved trade surveillance and compliance concerns is particularly troubling, as discussions about regulatory matters should occur through proper firm channels where they can be documented and addressed appropriately.

Investors should be cautious when representatives communicate with them through personal channels like text messages, WhatsApp, or social media. While it may seem more convenient, these communications are not supervised by the firm and are not retained as required by regulation. If something goes wrong, there may be no record of what was communicated.

If your representative asks to communicate through unofficial channels, you should decline and request that all communications occur through firm-approved methods.