Neither FINRA nor the SEC certifies any technology system as “compliant.”
It is the combination of thoughtful procedures with enabling technology that make your firm compliant.
With extensive recordkeeping and retention requirements, you must find a way to work at maximum efficiency while meeting compliance directives, all without compromising customer service or reducing your firm’s profitability.
A quality digital document management solution can help you meet these challenges cost-effectively by easing the burden of compliance, increasing the security of information and reducing the costs associated with paper storage and retrieval.
General Compliance Guidelines for Digital Document Management Systems
- You must be able to retrieve records on demand.
- Your images and database must be stored on acceptable media.
- You must maintain your records in an unalterable format.
- You must store your documents on unalterable media (CD or DVD), or you must use audit trail tracking that clearly identifies the original dates that images were captured into your system.
- For FINRA-registered advisors, a copy of your records must be maintained by a third party, independent from your operation—not your broker-dealer. These copies must be readily available to auditors.
- Your system must have reasonable controls to ensure integrity, accuracy and reliability.
- Your system must have reasonable controls to prevent and detect unauthorized creation of, additions to, alterations of or deletion of records.
- Your system must have reasonable controls to prevent and detect records deterioration.
- Your system must have an indexing system facilitating document retrieval.
- You must be able to print copies of records when required.
- Your system must be able to cross-reference with other recordkeeping systems and software. You should be able to produce all applications within a specific date range, or all correspondence from a particular date.
- Your system must have documentation on how the software works and how it is set up.
For more information and best practices on developing your firm’s document management procedures, download your copy of the whitepaper, “How Digital Document Management Solutions Support Compliance.”
11 Most Read IRIS Articles of the Week!
Why Secure Passwords Matter and How to Create Them
10 Ways to Celebrate International Women’s Day
Becoming a Great Podcast Host with Celeste Headlee
New Guiding Principles for Opportunity Zone Investors
Leaders: Do You Challenge Your Status Quo?
9 Marketing Trends That Will Dominate This Year
How To Keep Envy From Destroying Your Workplace
6 Tips to Help Your Journey to Retirement
Who Do You Sell to First
Forward-Looking Investing2 days ago
Moat Investing: Powered by Morningstar
Market Strategist2 days ago
We Are Not Convinced the Market Storm Has Completely Passed
Development2 days ago
Advisors: How To Answer “What Do You Do?”
Markets2 days ago
Higher Mortgage Rates, Student Loans and Nike
Equities3 days ago
7 Stocks That Pay the Largest Dividends of All That Trade on Nasdaq – Or Do They?
Advisor3 days ago
The Wizards of Wall Street vs. The Selbees from Michigan
Markets4 days ago
The Chameleons Are on the Run
Compliance4 days ago
Regulators Focusing on How Firms Identify, Monitor and Test Custody Scenarios With Client Assets