Understanding FINRA Record Retention Rules



FINRA in full stands for Financial Industry Regulatory Authority. While it sounds as though it is an agency that is part of the United States government, the truth of the matter is that it is not. It is a non-profit, independent organization that has been authorized by Congress to protect American investors. It is dedicated to the efficient as well as effective enforcement of regulations in the securities industry so as to protect individual investors and the integrity of the securities market. In short, this agency exists to ensure fair as well as honest securities exchange.

The rule 4511 of FINRA includes general archiving requirements that broker-dealers must meet or comply with. This rule is based on the general record-keeping requirements of NASD Rule 3110 as well as NYSE 440 that clarifies that firms are supposed to do the following. First, they are supposed to make and preserve books and records under the FINRA record retention rules, the applicable SEA rules and the Securities Exchange Act. Second, firms are supposed to preserve those FINRA books and records for a period of six years whereby there is no specified retention under the applicable SEA rules or FINRA rules. Third, firms are supposed to preserve books and records required to be made under the FINRA record retention rules in a format and media that complies with SEA rule 17a-4.

The above-mentioned FINRA record retention rules not only apply to written records such as business letters and documents, but they also apply to digital content channels such as text/SMS, social media, audio, video, blogs and website. For you to ensure that your company complies with the basic recordkeeping requirements that are set by rule 4511, you need to make sure that the archiving technology that you are using is able to satisfy all of the above-mentioned conditions. You should be able to efficiently capture and retain electronic data as well as content concerning compliance with the archiving requirements of FINRA and SEC.

For more information on FINRA record retention rules, visit our website at https://www.telemessage.com/

Comments

Popular posts from this blog

Exploring Text Message Preservation: The Importance of Verizon Text Recording and Monitoring Text Messages

Navigating WeChat's Archiving and Ephemeral Messaging: A Harmony of Memory and Privacy

Financial Regulation Text Message Archiving and SMS Archiving Regulations in the Financial Sector