FINRA and SEC Compliance Capabilities Now Available for Financial Services Firms

Compliance – Why it’s an IT issue
If you were to rank the most highly regulated industries, financial services might be sitting at the top of the list. This is almost ironic, in that financial know-how is often required to manage the expenses associated with the the sector’s recent technology boom.

In fact, a recent study suggests that 75% of the recent spike in the financial services sectors’ technology expenses is a direct result of regulatory compliance and security in general.

This isn’t surprising. Managing compliance from a technology perspective is costly because it typically requires additional servers and high storage costs, specialized applications that serve niche purposes, and a dedicated staff to manage, monitor and audit relevant systems.

Fortunately, there is an alternative to this complex, costly method.

Box: A Compliance Solution for Financial Services Firms
With the newly announced Retention Management feature, Box now provides financial services firms a cost-effective platform to help institutions comply with FINRA and SEC 17a-4 requirements. Firms that use Box to intuitively share content with clients, colleagues and institutions can now use the same platform to retain and delete their content in accordance with SEC 17a-4 for broker/dealers.

This is important to the industry for a number of reasons. First, companies no longer need to purchase a separate retention management system and move documents from their content management system. This not only helps reduce potential errors and the risk of non-compliance, but also reduces the associated time, maintenance and IT cost. In addition, the ability to meet compliance standards does not have to interrupt the user experience, reducing the burden on employees and administrators.

Key Components Specific to FINRA and SEC 17a-4
Key Retention Management features specific to SEC 17a-4 requirements allow customers the ability to:

  • Create - Create policies to govern how long documents will be retained. Even create an event-based retention policy by moving the record file to a folder with a finite retention policy. All of the files are stored in a non-rewriteable, non-erasable format (WORM).
  • Customize - Define retention periods, which can range from pre-defined periods (i.e., 1 year, 3 years, 5 year, etc.) to indefinite retention periods. Specify a disposition action when the retention period has expired.
  • Enforce - Block deletion of file records before the retention schedule has expired. Prohibit the decrease or override of a retention policy on a record file, but allow an increase to a record file’s retention by moving the record file to a folder with a longer retention period
  • Search – Search for specific files via the admin console, even trashed items.
  • Report and Audit - View a complete audit trail of each record file and the lifecycle of events applied to them, including the creation, modification and retirement of retention.

Learn More: Box for Financial Services
As announced in our Box for Financial Services launch in February, Box is committed to providing financial services firms the ability to intuitively share content and collaborate between institutions and clients with the control and visibility they require. By supporting key business processes– from loan origination to portfolio management and client management– Box helps banks, insurance and advisory firms achieve results faster.