#Canada #Toronto #Microsoft 365 #AdvisorVault #17a-4

Closing Compliance Gaps in FINRA Firms

In an era where the financial industry increasingly relies on digital platforms, ensuring compliance with regulatory standards is more critical than ever. One such regulation, Rule 17a-4, pertains to the retention of electronic records by FINRA (Financial Industry Regulatory Authority) member firms. The challenges that come with this compliance need addressing, especially for smaller firms that often juggle multiple technology platforms.

The Challenge with Current Technology Usage

Many FINRA firms operate on a mix of in-house and cloud-based technology, creating disarray in data management. For example, while some employees may use Microsoft products, others could be leveraging platforms like Dropbox, and yet more may store vital records on their personal hard drives. This fragmentation inhibits a centralized approach to meeting the requirements set forth by 17a-4, which demands comprehensive electronic records retention and supervision.

Recognizing these hurdles, AdvisorVault has introduced a free 17a-4 Gap Assessment specifically designed to help firms consolidate their electronic record-keeping onto Microsoft 365. This powerful tool not only creates a pathway toward compliance but also enhances security and accessibility for firms that might lack a dedicated IT team.

The Importance of Centralization

According to Allan Lonz, President of AdvisorVault, the primary hurdle firms encounter is their failure to fully transition to a unified cloud platform. He asserts, "The single biggest problem I see is firms not consolidating onto a full cloud platform. And Microsoft 365 is the best option for firms today." This statement underscores the importance of centralizing data management to facilitate compliance, allowing firms to address both data retention needs and cybersecurity concerns simultaneously.

By effectively transitioning to Microsoft 365, firms can better manage data archiving and enhance their ability to respond to audits and compliance checks. The Assessment aims to streamline records management, enabling crucial compliance examinations to be conducted with greater efficiency.

Key Questions Addressed by the Assessment

The AdvisorVault 17a-4 Gap Assessment seeks to tackle several vital queries that arise when achieving compliance:

• - Audit Supervision: Are compliance officers equipped to perform best-practice audit supervision through a secure web interface for records stored on Microsoft 365?
• - Designated Third Party (D3P): Has a D3P been appointed for independent access to the firm’s archives within 48 hours of a FINRA audit?
• - Records Retention: Does the firm’s archive adequately encompass electronic records as mandated by FINRA, covering the last seven years of journaled messages, chats, OneDrive/SharePoint content, and full email backups?
• - FINRA Compliance: Are advanced search capabilities, keyword flagging, and options to download sample sets from the cloud adequately enabled?

These questions are sufficiently crucial for firms to not only ensure compliance solutions but also to bolster their operational effectiveness overall.

Moving Forward with AdvisorVault

As firms navigate deeper into their transition to cloud platforms, the 17a-4 Gap Assessment provided by AdvisorVault presents an invaluable resource to bridge compliance gaps and enhance data management strategies.

To explore how to leverage this service, firms are encouraged to engage with AdvisorVault and request the 17a-4 Gap Assessment today. This initiative represents a critical step toward ensuring all aspects of data governance and compliance are adequately addressed.

About AdvisorVault

AdvisorVault is recognized as the only FINRA Designated Third Party (D3P) offering a Consolidated 17a-4 Service. This unique advantage provides small firms with a comprehensive approach to archiving and supervising electronic records, regardless of where they are stored, whether in-house or within various cloud solutions.

For more information, please visit AdvisorVault or contact Allan Lonz at 1-866-732-1407.