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Preparing for a FINRA Audit: Strategies for your ESM and D3P Success
Every brokerage firm and broker that does business with the U.S. public must be licensed and registered by the Financial Industry Regulatory Authority, or FINRA.
Face Your Next SEC Audit With Confidence
SEC Rule 17A-4 states that broker-dealers must archive their data and routinely review the archiving process. You know that your organization needs to be compliant, but you may not know how you can easily demonstrate compliance.
Designated third party provider compliance
The securities and exchange commission (SEC) requires broker-dealers to adhere to numerous regulations, including SEC Rule 17a-4(f)(3)(vii), which details stringent requirements on how electronic data is stored.
The Final Frontier of SEC Rule 17A-4(f)
In 1997, the Securities and Exchange Commission (“SEC”) issued Rule 17A-4(f), which authorized broker-dealers to store their required books and records in electronic format. Broker-dealers who elected to store records electronically were required by the rule to retain a third party (“Designated Third Party”or “D3P”) who had the ability to independently download electronically-stored information to another acceptable medium for the SEC’s review, (the “D3P Requirement”).
