“Redwing decided to use AdvisorVault, www.advisorvault.org to compliantly backup their data stored in the cloud and to serve as their FINRA D3P, because it was so simple to setup”, Said Allan Lonz, President of AdvisorVault, the only storage provider that has designed a solution for small firms. “Redwing needed a method to easily and inexpensively archive their data from Dropbox and store it in a compliant manner.” Lonz added.
The D3P regulation has serious consequences for FINRA firms and should form the basis of their data compliance strategy because the D3P should also act as the remote backup provider to archive electronic records in accordance with FINRA rules 17a-3 and 17a-4. This way several key rules are simultaneously met.
However, for small firms such as broker-dealers, finding this kind of provider can difficult because data is often dispersed throughout the whole organization on servers, desktop computers, laptops at branch locations or in the cloud. In addition, this data is stored in various formats such as emails, social media posts, office documents or scanned electronic records. Therefore, it is hard for small firms with limited budgets to find the ideal solution to effectively store this diverse information and at the same time satisfy the important D3P obligation.
Nonetheless, a small firm should look for three important features in a D3P:
1. Remote Data Archiving. The best way for small firms to achieve the D3P requirement is to choose a provider that offers remote data archiving. This means the provider uses an automated method to remotely transfer the required data from critical systems each night. It will then keep this data archived in a secondary location for the required amount of time.
2. At Flight and At Rest Data Encryption. Because financial firm’s electronic records are so sensitive, auditors will want firms to choose a D3P that offers at Flight and At Rest Data Encryption.
Because Red Wing Capital wanted to use cloud technology to store data for collaboration over the internet, they need to take an extra step to ensure this data stored in the cloud is compliant for auditors. They choose AdvisorVault because it was a secure, automated method to compliantly protect data stored in the cloud to help them assure to pass audits and the long-term archiving rules in FINRA 17a-4.
AdvisorVault, http://www.advisorvault.org offers the only designated third party service designed for small FINRA firms such as broker-dealers, independent investment advisors and wealth management firms. Our solution is suited specifically to help them achieve today’s stringent data archiving rules for firms storing electronic records in the cloud while helping them keep the overall cost of data compliance under control. With our turnkey D3P service, firms are assured to achieve the demands defined in the 17a-3 & 17a-4 electronic records archiving rules.
About Red Wing Capital
Red Wing Capital is an independent Indianapolis-