Since the financial crisis of 2007, the financial market has become more transparent and financial services firms are held accountable for their maintaining their records. In addition, in 2010 Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act which further improved accountability and transparency in our financial system. The Commodities Future Trading Commission (CFTC) is dedicated to improving transparency in the marketplace and has established recordkeeping regulations, like the role of the Technical Consultant, to do so.

In Section 4 of the Rule 17 CFR 1.31, the role of the third party technical consultant (similar to the designated third party rule with the SEC) is addressed:

“Any person who uses only electronic storage media to preserve some or all of its required records (“Electronic Recordkeeper”) shall, prior to the media’s use, enter into an arrangement with at least one third party technical consultant (“Technical Consultant”) who has the technical and financial capability to perform the undertakings described in this paragraph (b)(4). The arrangement shall provide that the Technical Consultant will have access to, and the ability to download, information from the Electronic Recordkeeper’s electronic storage media to any medium acceptable under this regulation.”

Click here to see what Iron Mountain is responsible for as a designated third party.