Popular on eTradeWire
- 227's™ YouTube Chili' TRAGEDY ALERT! Cam & Fam YouTuber Dead at 19! #NIKE'Spicy' NBA! 337
- Motaz H Matar's Virtual Tour for New Book The Pigeon Whisperer 242
- Deep Learning Robotics (DLR) Teams with FANUC to Provide Compatibility Between DLR's Smart Robot Learning Technology and FANUC's Industrial Robots 179
- Visual Artist Kae Cheatham Maintains a Strong Online Presence 154
- Ashley Argota, iPOP Alum, to Star in New Comedy Thriller 'Don't Log Off' 137
- Judge Orders End to Detaining Immigrant Children in Hotels 132
- Female Founders Pitch Summit Commits To Fund More Women-Led Companies 103
- Proudfoot & Savigent Introduce Operational Resiliency Excellence 101
- Words fly off the page as learning goes through the roof for Kindergarten
- Ancient Astronauts - Releasing This Week On DVD & VOD
Similar on eTradeWire
- IDI Consulting Celebrates 25 Years of IT Consulting and Business Solutions
- ELEKS to Host an Online Workshop: Sustainable Value for Businesses
- ELEKS Recognized as a Top IT Services Company in 2020
- BitcoinPoS Bringing another revolutionary concept to the Crypto World
- What to do if the HP Printer is unable to print
- HP Printer Troubleshooting Steps
- Zwolinski, Jenkins Launch Skillsgapp To Reach GenZ With Skills-Based Gaming App Training
- DeskProto® releases free CAM software for Linux
- BeBop Sensors & Talon Simulations Awarded Epic MegaGrant to develop a haptic glove-driven, full-motion VR trainer built for the Unreal Engine
- Freight Right partners with Chain.io to bring real time shipment visibility to FreightOs customers
Also, I've been lecturing firms that they must constantly seek ways to keep data compliance costs as low as possible yet keep regulators happy. This is no easy task given all the confusion today, however, the best start is to understand the basics about SEC rule 17a-4. This doesn't mean downloading and reading the whole 65-page document with its dozens of updates and amendments but, instead, understanding how to choose the most efficient technology while passing the electronic records request – the test a regulator will do during the audit where they'll ask for a sample data set from the archive, whatever that may be.
Lots of Questions, Few Answers:
Now, I know – likely more than anyone today - that small firms don't have the money to pay in-house compliance or tech staff so they have to figure it out themselves. At the same time new questions are coming up all the time, for instance: What kind of hard drive is needed to store data? Is the cloud 17a-4 compliant? Can everyone in the company simply store all their files in Dropbox? How about OneDrive? Is data in the cloud indexed? What about Office 365 or Gmail? Do they archive emails for 17a-4? If a small firm moved its office virtual, who does the disaster recovery? Does the cloud provider have to give them their business continuity planning procedure or is there another third-party add-on? Do FINRA firms even have to archive data in the cloud?
Unfortunately, there are few answers readily available, and FINRA is no help in this area; they are far behind, as they don't have the in-house expertise to guide members in "best practice for electronic records retention," yet they're the first ones through the door handing out fines. Further, their on-site auditors aren't up to date either: they still tell firms they must use worm disk for data storage. Where, in reality, that was changed in 2003 when rule 17a-4 was amended by the SEC to allow the use of software to retain data, independent of hard disk. Essentially this means vendors of 17a-4 can archive data simply by allowing a specified expiry or retention period to block record deletion or alteration within their software programming. Then, after the expiry is reached or the retention period has lapsed, data can be deleted from the archive, thereby freeing space for reuse. A win-win for everyone, otherwise there will be piles of useless worm disks wasting space and money. Yet few firms are aware of this.
More on eTradeWire News
- PacknWood Food Service Supplier Updated Their Catalog With These Two New Taco Holder Products
- Four New Paper Bag Designs Now Available in PacknWood's Food Service Supplier Catalog
- Mindover Software Adds to Acumatica ERP Consulting Team
- Highly Potent CBD Isolate Mega Sale
- The Nation's Leading Chiropractor Announces First Cutting-Edge Facility in Pennsylvania
The Basics of 17a-4:
Nonetheless, despite all this confusion, there are a few basic things I've learned over the years about 17a-4 that I want to share that will explain how to keep costs low as possible yet reduce the risk.
First, when it comes to data security, there is no mystery in proving to FINRA that you're keeping hackers off your system. It's a simple matter of applying proper permissions and strong password policies to anything accessed from outside such as VPN connections, servers, and cloud systems. For example, making sure there's a single user with admin permissions only and the password for this user is complex with frequent changes will keep regulators happy, no need to call in James Bond. Also, there's this confusion among FINRA firms that putting data in the cloud automatically makes it non-compliant, that's not true – in fact, FINRA has now migrated all their systems to the cloud themselves.
The reality is FINRA doesn't care where data is stored. Their only concern is that it's properly retained, which means: (1) a designated third party makes secondary copies of this data, (2), retains it for seven years in its original format, and (3) can reproduce this data if requested - the three essentials of rule 17a-4. AdvisorVault customers are moving to the cloud all the time and keeping compliant. They are going with Office 365, with OneDrive, Google Drive or Dropbox, then we simply plugs into whatever they choose and transfers it over to its 17a-4 compliant system, therefore acting as its customers D3P at the same time.
Another big mistake I notice is firms thinking they need to archive everything or risk failing the audit. Again, rule 17a-4 is vague on this by saying firms must retain all communications including books and records, which leaves lots of interpretation these days; meanwhile, vendors take advantage of this confusion, trying to inflate their bottom line by selling archiving products that aren't needed. It's essentially a scare tactic. For instance, there's this crazy idea going around that all social media used by reps must be archived such as Twitter posts, Facebook and LinkedIn pages; essentially it's believed that every website a rep decides to put their smiley face on should be backed up. It's not the case. You can simply avoid this quagmire by creating an IT communication policy that clearly outlines what compliance is allowing people to communicate with, then just say it's only going to be email – and Bob's your uncle.
More on eTradeWire News
- This Version Instead: Arts Garage in Delray Beach Resurrects Live Local Theatre with BUNKER
- FlatToast Is Calling On Chinese Auto Companies To Get Their Heads Out Of Their Ass - Sell in USA
- League of Women Voters PBC Invites Public to Timely and FREE Zoom Discussions
- TRENIQUES: New York Fashion Week Features
- Modeling is about inspiring change
Finally, when small FINRA firms are trying to keep data compliance costs as low as possible to avoid those nasty fines, there must be seamless checks in place to make sure no gaps appear as the firm grows. For example, when a new employee is added, any files that they create will automatically be captured in the 17a-4 archive, this applies to their email as well. Incidentally, the best way to accomplish this is using the cloud because archiving software can automatically detect new sites, folders, or email accounts within cloud services: another great reason to move your office to the cloud since this option isn't available with in-house email or file storage systems.
AdvisorVault is the only designated third party focusing on solving the data archiving demands of SEC rule 17a-4. Our service is designed specifically for small firms that need one vendor to help them satisfy today's demands surrounding data archiving and supervision. We have created a centralized archiving option that captures data and emails no matter where they are stored - in-house or in the cloud: total peace of mind - out of the box.
Allan Lonz, President
Toll-free: 1-866-732-1407 ex 1
- The Nail Tech Chronicle, A New Comedy Short Film
- "Get Happy: Angela Ingersoll Sings Judy Garland" October 11
- Social media platform startup, WipFly, offers e-commerce advertising
- The 6-Feet COVID Rule Can Kill You - CDC Flip Flops
- Dan Veitkus, Chief Executive for Corsica Partners, Hits Amazon Best-Seller List
- New Release! ResumeMaker® Pro Web Version 7 by Individual Software® Cloud-Based Resume Software
- Price.shopping Launches Price Comparison & Monitoring Service
- Central Florida Zoo announces weekday discount
- SpookyGenius.com Announces the Launch of the Ecto Portal at ectoquest.com
- TIRES2U EXPRESS CORP. successfully incorporated their business in British Columbia
- The Amazing Acro-cats Video Release!
- Dr. Stephen Giordano offers the Motus Laser for Painless Hair Removal
- Internal Pipe Technologies Announces USA Based CIPP Lining Plant
- Community First Health Plans Announces Theresa Scepanski as President and Chief Executive Officer
- 500 Gallery introduces an industry first: lot views in the round via YouTube for a tribal arts sale
- CDC Flip-Flops on COVID Distance Again - But Still Wrong
- The Phoenix Within debut "Tenfold" Music Video
- NTI Introduces Rugged Door Contact Sensors
- "The Window" Transforms a Struggle for Redemption Into a Fantastical Journey of Self Discovery
- 90,000 Younger Americans Will Be Diagnosed With Cancer Shares Critical Illness Insurance Association