Rules and Regulations
FINRA Sanctions & Fines…
FINRA fined Barclay's $3.75 million for failing to retain important archives in WORM (non-erasable) storage format.
Securities regulators require broker-dealer firms to archive and review specific company information, including company emails and their publicly available Websites.
In reviewing the 2013 Sutherland FINRA Sanctions Survey, enforcement actions related to record keeping and electronic communications rose significantly - by 132% over the prior year.
Securities Rules Are Clear, Corporate Websites Must Be Archived
FINRA considers a financial firm‘s Website to be an advertisement, and therefore subject to the same regulations as it would with any advertisement.
Firms must fully preserve and archive their public Websites.
SEC Rule 17a-4 & SEC Interpretive Releases:
Electronic Storage of Broker-Dealer Records & Guidance on the Use of Electronic Storage
The Securities and Exchange Commission (SEC) has published its views on the use of electronic storage and record retention for U.S. broker-dealers. In these releases, the SEC permits broker-dealers to store required records in an electronic format. Also detailed in these releases, the SEC outlines the process in which broker-dealers should store, index, and access their archived information.
In SEC Rule 17a-4 and subsequent related Interpretive Releases, The SEC requires that these archived records be
, or stored in a non-rewritable and non-erasable format,
(Write-Only Read-Many) storage device.
The archives must be readily accessible and stored to duplicate storage media devices. It must be serialized, and provide a searchable index.
In summary, SEC Rule 17a-4 requires archived data, which includes company Websites, be archived:
- Using immutable, Write-Once Read-Many (WORM) compliant storage devices
- Keeping multiple copies of required archived data in separate, secure locations
- Storing to duplicate storage devices to separate, secure locations
- Serializing and time stamping archived data
- Keeping files readily accessible
Electronic Storage of Broker-Dealer Records
Guidance to Broker-Dealers on the Use of Electronic Storage Media
Commission Guidance of the Use of Company Websites
Books and Records Requirements for Brokers and Dealers Under the Securities Exchange Act of 1934
SEC Books and Records Amendments
FINRA Regulatory Notices
FINRA Notice, 12-29, SEC Approves New Rules Governing Communications With the Public (June 2012)
FINRA Regulatory Notice 11-39, FINRA Social Media Websites and the Use of Personal Devices for Business Communications (August 2011)
FINRA Notice 10-06, Guidance on Blogs and Social Networking Web Sites (January 2010)
FINRA Notice 07-59, Supervision of Electronic Communications, FINRA Provides Guidance Regarding the Review and Supervision of Electronic Communications (December 1007)
Compliance Vault, LLC® assumes no liability or responsibility for any errors or omissions in the content of this Website. Please consult your compliance officer and/or attorney for specific information on how these rules and regulations apply to your firm.