I recently realized that the 17a-4 electronic records request is causing serious problems for FINRA small businesses. In particular, when asked for a sample data set that can range from Word documents to scanned records, emails, databases or even the status of systems for disaster recovery. The company then has to log into its 17a-4 file, download this data to disk, and hand it over to the regulator on the spot. The problem is that the electronic records of many companies are now so dispersed that gaps in their files often appear or certain data is simply not included because the technology department makes changes, such as adding new employees without knowing the compliance.

Therefore, before implementing the AdvisorVault 17a-4 Remote Data Archiving solution as part of our FINRA Designated Third Party (D3P) obligations, I take the time to show companies a few tricks to help them automate the archiving of electronic records. to close these gaps.

Centralization of the data file 17a-4:

When it comes to complying with SEC rule 17a-4, it’s important to understand the basics of what to expect. Despite all the confusion surrounding data compliance today, FINRA companies simply need to accomplish three things: (1) Archive data related to books and records, emails, and systems for disaster recovery, (2) ) store this file with a designated third party for seven years. and (3) ensure that this data can be made available to regulators during an audit. Doing these three things will solve 90 percent of a company’s data compliance concerns, the rest are simply procedures and documentation of the above.

First, companies must centralize their books and records before filing them with their FINRA D3P. For example, when using cloud storage like Dropbox, OneDrive, or Google Drive, my advice is to use the folder sync option as the default save for all registrants. This option, included with all cloud storage products, places a local folder on each computer that is used to store electronic records created by each person in the business which are then saved to the same folder in the cloud. By doing this, all data for retention 17a-4 is stored centrally, which AdvisorVault can easily accomplish in one step.

Also, this sync folder can be used to consolidate the storage of other important data that needs to be archived in the third designated for 17a-4. Such as scanned electronic records, customer database backup dumps, or exports from the CRM, while at the same time helping businesses create a truly paperless office with access to electronic records for anyone, from anywhere. place. While in the end, keeping compliance officers and auditors happy.

To automate email archiving for 17a-4 record monitoring and retention, I suggest using Office 356 or Gmail cloud email hosting, but with journaling enabled. The journal automatically forwards all incoming and outgoing emails from the cloud provider to AdvisorVault, which are then kept for seven years in their original format; the two critical things regulators want to see. Additionally, if new email accounts are added, journaling automatically captures them in real time, without the need for compliance or technical support to manually add them to your 17a-4 archive.

Finally, to automate disaster recovery as part of FINRA’s business continuity planning requirements, AdvisorVault includes ShadowProtect to schedule full image copies of customers’ physical or virtual servers. These images are then transferred to our remote storage 17a-4 each time they are created. The key here for disaster recovery is that any version of a server image can be booted or run directly from our cloud for immediate access. This, in turn, helps companies minimize downtime, as their physical servers will not be active during a disaster. As an added measure, ShadowProtect allows granular restores of individual files or databases if required during recovery.

Summary:

FINRA small businesses are having trouble today with requesting electronic records 17a-4 because gaps often appear in their 17a-4 data archiving process. The solution is to centralize the data before archiving it by using the cloud sync option, journaling and ShadowProtect so that your D3P has an area for archiving and data retention as required by rule 17a-4 In the end, the compliance officer will be able to download everything requested by the regulator when they arrive for the request for regular electronic records.

About AdvisorVault:

Designed for small businesses, AdvisorVault is the only FINRA Designated Third Party Provider (D3P) that has created a complete solution for data archiving 17a-4. For a flat monthly fee, we guarantee remote backup, retention and monitoring of all electronic records by 17a-4 with full disaster recovery as part of your business continuity planning requirements. A complete, turnkey, ready-to-use compliance solution.

To request a demo of the AdvisorVault solution, click the link below:

http://www.advisorvault.org/free-trial-offer

AdvisorVault Contact:

[email protected]

direct: 416-985-0310

Toll Free 1-866-732-1407 ex 1