Rule 17a-4(f) is the Securities and Exchange Commission’s regulation outlining the details regarding how records must be maintained and preserved if the broker-dealer is using electronic storage media.

If electronic storage media is used by a member, broker or dealer it has to comply with the following requirements:

1. If you are using anything other than optical storage media (including CD-ROM) you have to notify your examining authority.

Notification can come in one of three ways:

The member, broker or dealer must:

• Provide their own representative
• Provide a representative from the vendor of the storage device being used.
• Provide a third party representative with appropriate knowledge about the storage solution and that it meets the conditions set forth by the SEC.

OK, so this shouldn’t be too hard to accomplish. In other words, you’re going to need someone to vouch for you.

Alright, next we’re going to talk about what the storage media  has to accomplish:

1. It has to preserve records in a non-rewriteable, non-erasable format.

2. It has to automatically verify the quality and accuracy of the recording process.

3. It has to time stamp the data so it’s retained for the required length of time.

4. It has to have the capacity to readily download records to any medium required by the Commission or SRO of which the dealer, broker or member is affiliated with.

Our software adheres to all of these requirements and immediately lets any member, broker or dealer immediately satisfy the intent of the law.

Click here for more information about Filetwin and staying compliant.

  Copyright secured by Digiprove © 2010

Over the course of our feet-on-the-street sales initiatives, we’ve come across several “boutique” real estate firms/brokers. When we talk to them about backup, often they seem disinterested because most of the time they store hard copies. Since this works, they dismiss the virtues of using online backup, but more on that in a minute.

First, most boutique real estate companies generally use independent associates. Those associates go out under the banner of the company to manage real estate transactions. Ok, so the broker still uses paper, but what if the broker suggested the associate use some form of backup. In a way, the broker is nurturing their flock of associates. Making sure they are adequately prepared on all fronts to manage their independent real estate business.

Obviously, it’s hard to sell something to someone who isn’t interested and when something works…why fix it? In this economic time, it’s easier to stomach it when someone throws this ancient phrase around. But, there’s a number of good reason why small businesses should begin to make the transition. And that’s what we are talking about here…beginning to make the transition.

Should the broker go 100% digital right off the bat? No, it should be a managed process that evolves over 6 – 9 months.

Should the broker suggest viable software products to their associates? Yes, the majority of associates aren’t familiar with these types of products and might appreciate being pointed in the right direction.

Should the broker buy a decent scanner to begin digitizing their office? Yes, no question about it. Just remember that the resolution need not be set to Fine or Superfine because a text document doesn’t need the definition that portrait might. You don’t want to be unnecessarily storing large documents.

Lately, because of the economy, brokers feel they need to cut back on expenses and become cost conscience. Normally, technology that “appears” redundant gets cut first. But it’s the counter-intuitive person that uses this time to shore up their technology so they are stronger when the economy turns back in their favor. So here’s how we frame it…if you use an iPhone, you’re probably paying over a hundred dollars monthly. For a whole lot less you secure all of your digital assets. To secure a server, it’s about the same as your iPhone.

There are compelling reasons why boutique real estate agencies should begin using online backup and there are good reasons why their associates should be doing the same. Filetwin satisfies all real estate commission’s Bureaus of Enforcement regulations.

To learn more about Filetwin, please visit our Features page.