Financial advisors have been dealing with regulatory oversight and strict recordkeeping rules for years. But now that more firms are transitioning to digital recordkeeping, advisors need to understand that saving a digital record on their computer or server is not the same as storing a paper record in a filing cabinet.
Digital files and records are a flexible and secure way for advisors to process information, but that’s only when they are stored in the right type of system. Saving your records to a computer, basic cloud-based storage, hard drive or company storage server will only put the firm at a risk of incurring large fines.
Either a non-compliant advisor’s workstation or my grandparents’ home computer.
SEC 17a mandates require digital records repositories to have:
Files saved into a Windows directory can’t meet all three requirements. For example, when a document is saved to a computer, the “Date Created” and “Date Modified” dates are based on the computer’s local time, which can be easily altered.
On the other hand, an enterprise content management (ECM) system helps firms create a repository that can securely store records and publish the records to unalterable media. With an ECM system, financial advisors can:
To learn more about how ECM can compliantly archive your digital content, download your copy of The Dos and Don’ts of Social Media Archiving .