The Advantages of Streamlined Email Archiving for Growing Firms
Plotting a course to success in the competitive financial services industry also means navigating a sea of nuanced regulatory requirements, as specified under SEC Rules 17a-3 and 17a-4, FINRA Rule 4511 and FINRA 3110. These rules specify recordkeeping requirements for firm communications, including emails, to be retained and supervised. Registered organizations must follow these regulations to remain in good standing and avoid penalties.
FINRA defines digital records rather vaguely to cast a wide net around communications generated from financial services-related business activities, including conversations about transactions within:
- Emails and other forms of electronic communication used for business purposes
- Instant messages, chat logs, in-app messaging
- Any communications created, sent, or received electronically
Once created, digital records must be stored in a format that prevents alteration or deletion and must be:
- Archived in non-erasable, non-rewritable (WORM): Digital records are kept as non-erasable, non-rewritable records or;
- Digitally stored with audit trails: Records maintain a visible modification footprint and;
- Quickly accessible: Stored and available for prompt retrieval if requested in the case of an audit or legal request
Audit trails leave a digital footprint on the life of a digital record and can show any modifications or deletions made to its content. Together, these requirements ensure that firms can demonstrate compliance with regulatory standards to maintain the integrity and security of correctly archived digital records.
Why this matters
Efficient recordkeeping fosters a competitive advantage. As communications data within financial services firms expands in size and complexity, regulatory expectations are morphing to keep up. Speed and agility are required to stay ahead of regulation changes – and the competition. Keeping compliance workflows easy, efficient, and reliable is key to saving time while improving your compliance posture.
The more your staff is unburdened from labor-intensive compliance demands, the faster your firm can focus on core business objectives. A streamlined solution provides real-time insights, a clear view of reviewer activity, and quick access to support. It provides a game-changing advantage in a fiercely competitive market.
Accurate email archives aren't just for mega-firms
As the threat of mismanagement of digital communications, including email, becomes more prevalent, the SEC and FINRA will continue to mandate and enforce recordkeeping requirements. While the technology we use to communicate has advanced, the same rules still apply regardless of the size of the organization in question.
Larger financial firms often have finances set aside just in case they hit a snag in recordkeeping requirements. Meanwhile, small to mid-sized firms are not invisible on the regulators' radar and face potentially devasting impacts without the resources to bounce back as quickly as larger enterprise organizations.
While every firm's goal is to avoid penalties and fines, growing firms running on tighter budgets mustn't get caught off guard. If firms are flagged or discover recordkeeping errors during a self-audit, reporting any discrepancies proactively and quickly correcting course to remedy any mistakes looks good in the eyes of regulators.
What small and mid-sized firms need to know about email archiving
Firms in good standing aim to meet their recordkeeping requirements for all relevant communications. The core definition of digital records is any digital communication that can be read and/or downloaded. Smarsh understands that recordkeeping is never a one-and-done matter; continuous oversight is required to ensure compliance. That is why we created our time-tested solutions, such as Professional Archive, to streamline email archiving and compliance workflows with built-in security and simple-to-use reporting options.
Smarsh guides financial services firms of any size at every stage of their compliance journey. With time-tested archiving solutions and managed services for ongoing support, your firm can remain compliant while enhancing cost-effectiveness and efficiency. Our trusted archiving solutions ensure that all emails and digital communications are captured, retained, easily searchable, and can be exported if required. Worry-free archive capability keeps operations running smoothly and empowers you to focus on meeting core business goals for future-focused success.
With Smarsh archiving solutions, your firm can ensure all your email communications are captured and stored so your organization can stay compliant with regulatory requirements and recordkeeping initiatives.
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Scalable for organizations of all sizes, the Smarsh platform provides customers with compliance built on confidence. It enables them to strategically future-proof as new communication channels are adopted, and to realize more insight and value from the data in their archive. Customers strengthen their compliance and e-discovery initiatives and benefit from the productive use of email, social media, mobile/text messaging, instant messaging and collaboration, web, and voice channels.
Smarsh serves a global client base that spans the top banks in North America and Europe, along with leading brokerage firms, insurers, and registered investment advisors. Smarsh also enables state and local government agencies to meet their public records and e-discovery requirements. For more information, visit www.smarsh.com.
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