SEC 17a-4 Requirement One: Backup data relating to their books and records and keep a copy separate from the originals
SEC 17a-4 Requirement Two: Archive these electronic records for at least 7 years on non-rewriteable media
SEC 17a-4 Requirement Three: Assign an independent company, called the designated third party (D3P) who can also access this data for auditors in its original format
For large firms with full IT and compliance staff this is not a problem; they have the money to build and manage their own systems in house and can easily archive their electronic records in accordance with FINRA and SEC rules. But for small firms with limited budgets this is a big problem, and trying to manage this process is simply impossible. So they need to outsource these key requirements to a third party provider, but with all the choices out there, how do small firms choose one provider who can offer a complete solution to ensure the electronic records retention and supervision rules of SEC 17a-4 are properly met?
Remote Data Archiving for Compliance
Remote data archiving is a technology used by small broker-dealers, investment advisors and wealth management firms to accomplish SEC 17a-4. It provides a readymade option to quickly ensure all the critical FINRA and SEC regulation surrounding electronic records retention are met. Furthermore, by choosing a provider who offers this technology, several benefits are instantly realized:
Key Benefits of Remote Data Archiving:
1. Fully Outsourced: Remote data archiving is an outsourced solution managed by a third party. The software is automatically updated and the whole process is monitored to ensure full compliance at all times
2. One Flat Monthly Fee: For one low monthly fee it includes the protection of data on all servers, computers and laptops at all locations including head office, branch location and home/travelling users
3. FINRA Compliant: Data is stored and retained in accordance with FINRA rules in a secure remote location
4. Simple Setup: Remote data archiving does not require special hardware and includes all the software to protect and unlimited number of server and computers at all locations
5. Secure Data Protection: Data is encrypted and stored at in AES 256 secure format, the highest industry standard used by the American Government
6. Protection for all Data Formats: The solution support the protection of data contained in the books and records, other documents, databases and emails
Remote Data Archiving is a technology offered by remote backup providers that helps small financial firms achieve SEC Rule 17a-4. It is an inexpensive, outsourced method for broker-dealers, investment advisors and wealth management firms to transfer data offsite and archive it for the required amount of time. It also provides the D3P service and allow for quick recovery of data in the event of a disaster. But more importantly, it ensures audits are successfully passed and the highest level of customer confidence is maintained at all times.
AdvisorVault, is the only remote backup provider that offers remote data archiving specifically designed to help small firms achieve today’s stringent data compliance requirements. With our designated third-party status (D3P) we help our customers achieve all the required data compliance rules defined in 17a-3 & 17a-4, as well as the supervisory and disaster recovery demands contained in FINRA rules 3510 and 3010. For one flat monthly fee the service includes everything need to ensure SEC audits are successfully passed. Call o request a quote or live demo.
Allan Lonz, President and CEO
Toll Free: 1-866-925-1941
Contact via Email
Click here to read the full story: AdvisorVault Adds Remote Data Archiving Service to Help Customer with SEC 17a-4 Regulation