Financial institutions subject to Securities Exchange Commission (SEC) Rule 17a-4 are required to meet strict regulations that govern electronic data storage, retention, and IT processes. A specific requirement of Rule 17a-4 states that “…every member, broker or dealer exclusively using electronic storage media for some or all of its record preservation” must have an arrangement with a third party who can provide the SEC with access to a broker-dealer’s records upon request.
Financial institutions that prefer to retain and house their own data must engage a dependable independent third party with technical IT knowledge and experience to carry out its duties under this SEC requirement.
Globanet D3P Offers a Safe, Secure Solution
Through its Designated 3rd Party service (D3P), Globanet assists financial institutions in meeting the SEC 17a-4 requirement, and helps ensure compliance integrity. Our comprehensive environmental plans not only satisfy the independent 3rd party requirement, but also help uncover system and configuration issues in advance of an audit. Globanet’s detailed methodology involves analyzing your IT environment and attesting your compliance to the SEC. The result is peace of mind and assurance that your firm has satisfied this essential requirement of SEC Rule 17a-4.
D3P Deliverables
As part of our Designated 3rd Party compliance service, Globanet will work with your IT staff either on-site or remotely to:
- Develop a comprehensive environment plan detailing our access to your electronic records
- Test our procedures to demonstrate and confirm easy record retrieval
- File a Letter of Undertaking with the SEC, NASD, and / or other regulatory bodies
- Update your environment plan and test download procedures twice annually