This article examines potential consumer harm that may arise due to regulating modern financial services
communication technology with rules written in the early 20th century. It is argued that disparities in record
keeping regulation across communication mediums disincentivizes the use of technology capable of generating
records for consumer retention, while incentivizing the use of technology which shields financial advisors from
accountability. Experimental evidence is provided in support of this argument. Further, it is argued that
regulation disparities across communication mediums may result in more wrongful accusations of advisor
misconduct, less reporting of genuine misconduct, less self-policing among industry members, and greater
unrectifiable consumer harm. Objections to these arguments are considered, along with practical guidance for
consumers, regulators, and policy makers.

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