Today’s blog topic will focus on FINRA’s record retention rules. Basically, FINRA and NASD members must comply with the guidelines of Rule 17a-4 and shall preserve for a period of not less than 6 years, the first 2 years in an easily accessible place, all records required to be made pursuant to Rule 17a-3(a) (1), (2), (3), and (5). The Securities Lawyer’s Deskbook published by the University of Cinncinnati College of Law outlines this rule pretty clearly. If you click on the last link , the document that appears has the retention requirement on the first line. Most brokers know this rule, however, the ambiguity comes from words like “an easily accessible place”.

We went so far as to call the S.E.C. to get their interpretation of what “an easily accessible place” really means. Well, if you’ve called the S.E.C. before, then you know that they won’t get really specific about definitions because they seem to like to leave everything up for interpretation.

So here’s our interpretation of what an “easily accessible place” is…

1. Your office seems pretty accessible if you’re storing hard copies or documents on an external hard drive.

2. Storage facilities seem easy to access. The issues becomes how quickly can you get there I guess.

3. Online backup seems pretty accessible because you can do it from anywhere, which can’t be said for #1 or #2.

4. Your basement seems easily accessible.

5. The trunk of your car is accessible (believe me, we’ve heard this from customers that they used the trunk of their car to store their digital assets).

I guess you can store your files anywhere except Mount Everest or North Korea. Those are two places that seem pretty inaccessible to me. Therefore, as long as you can satisfy the intent of the regulations and promptly produce records when requested by any SRO, you should be in good shape using anyone of the 3 suggestions above.

Now, because we are an online backup company, we have to bestow the virtues of our preferred solution…lock up and secure your files online. This way, they are out of your way and stats show that 80% of most stored files aren’t even referenced during their life cycle so why store them in your office. If you were ever audited, you would be able to promptly produce records so you would satisfy the regulations and safe yourself money by better using your office space and turn what normally incurs a capital expense and turn it into an operating expense.

If you prefer to discuss this option some more, please feel free to call us at 1 877 310-2884 and one of our Backup Specialists will be pleased to continue this discussion.

  Copyright secured by Digiprove © 2011

The deadline is upon us, starting in a few weeks, the new FINRA mandate will be implemented for member, brokers or dealers.

The SEC has approved amendments to FINRA rule 8210 that requires encryption of information provided via portable media devices (PMD).

A portable media device can be either a CD-ROM, DVD or portable hard drive. That’s right folks, it’s time to encrypt all your files starting December 29, 2010. In other words, starting in 2011, any electronic records or files have to be encrypted with 256-bit encryption or higher.

Additionally, you’ll have to provide FINRA staff with the confidential key regarding the encryption.

Now, this is where our product REALLY HELPS YOU OUT. Below is an image we’ve published several times that speaks exactly about this issue….encryption with a personalized encryption key.

Basically, this is a product we’ve been offering for some time now. By using our product, you’ll satisfy the intent of the law and the amendments by using Filetwin. 256-bit AES encryption is standard with Filetwin.

Here’s a simple picture of how your software looks when it’s encrypted and perhaps this will make sense why FINRA requires it.

This amendment might be a pain-in-the-butt for members, brokers or dealers but it’s a good thing to do for your own safety. There are too many people out there trying to get their hands on information that doesn’t belong to them.

For more information or just to discuss file encryption, please feel free to speak directly with one of our U.S. based Backup Advisors by calling 1 877 310-2884 or click here to contact us online.

  Copyright secured by Digiprove © 2010

Well it seems the SEC has approved amendments to FINRA rule 8210 that requires encryption of information provided via portable media devices (PMD).

A portable media device can be either a CD-ROM, DVD or portable hard drive. That’s right folks, it’s time to encrypt all your files starting December 29, 2010. In other words, starting in 2011, any electronic records or files have to be encrypted with 256-bit encryption or higher.

Additionally, you’ll have to provide FINRA staff with the confidential key regarding the encryption.

Now, this is where our product REALLY HELPS YOU OUT. Below is an image we’ve published several times that speaks exactly about this issue….encryption with a personalized encryption key.

Basically, this is a product we’ve been offering for some time now. By using our product, you’ll satisfy the intent of the law and the amendments by using Filetwin. 256-bit AES encryption is standard with Filetwin.

Here’s a simple picture of how your software looks when it’s encrypted and perhaps this will make sense why FINRA requires it.

This amendment might be a pain-in-the-butt for members, brokers or dealers but it’s a good thing to do for your own safety. There are too many people out there trying to get their hands on information that doesn’t belong to them.

For more information or just to discuss file encryption, please feel free to speak directly with one of our U.S. based Backup Advisors by calling 1 877 310-2884 or click here to contact us online.