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/
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