To make sure data is properly protected for full compliance, it is important to understand the difference between the two main data types – static and dynamic; each requires a different approach to ensure full protection. Static data consist of things such as word documents, scanned records, PDFs and client databases. However, because static data [...]

A proper data backup and archiving solution to meet SEC rule 17a-4 needs the following features: Comprehensive: Rule 17a-4 stipulates that a firms must protect and keep available the books and records relating to its business. This must include data such as email residing on internal servers or PCs and other records such as word [...]

When it comes to satisfying today’s data compliance regulation such as SEC 17a-4, the big question FINRA firms have to ask themselves is, “What is the difference between regular data backup and data archiving?” This is important to answer, especially for small firms such as Broker-Dealers and Registered Investment Advisors because they have to outsource [...]

The electronic records retention requirements of SEC rule 17a-4 or the SEC Books and Records rule, defines the following types of data must be retained: Emails and other communications Trade Blotters Asset and Liability Ledgers Income Ledgers Customer Accounts Order Tickets Trade Confirmations Trial Balances and various other related documents Systems Configuration data for recovery [...]

The FINRA books and records rule or SEC 17a-4 outlines three main responsibilities for FINRA firms: One: It outlines which electronic records must be retained by Broker-Dealers, i.e. data relating to the business and other communications such as emails and other communications they have allowed as defined in their communications policy. For example, if the [...]

For instance, AdvisorVault has built in connectors to G Suite and Office 365 to automatically capture all data on these Cloud systems to transfer it over to our 17a-4 compliant platform to retain this data for 7 years in its original format. In addition, AdvisorVault makes this cloud data available for retrieval by customers at [...]

Broker-Dealers are no longer restricted to using only worm disk to store electronic records to satisfy rule 17a-4. This used to be the case but was changed by the SEC in 2003. Because of the increase in data amount and new technology, 17a-4 was amended to allow Broker-Dealers who are FINRA members to store electronic [...]

Here is essentially three things FINRA will demand during an audit: One: Reproduce the communications made from registered reps to clients. The key here, especially for small firms is to first clearly define through a communications policy what method reps will use to work with client. For example, if the policy defines email and Facebook, [...]

During an audit, FINRA will surely perform an electronic records request. This request is a sample data set from the firms archive. For instance, the auditor will request historical emails from one or more registered reps, from a certain time data in PST format, they will also ask for a sample of the books and [...]

The cloud surely is a viable option for small FINRA firms to store data. Broker-Dealers for example can effectively use it to share documents among employees, partners and customers. However, they need to understand that storing data in the cloud by default is not 17a-4 compliant simply because data can be modified at any time [...]