Case Studies of Non-Compliance and FINRA

March 06, 2017 by Jatheon

Is your company part of the financial sector? Are you in compliance with all regulations concerning email preservation? If not, it only takes a few minutes at the FINRA (Financial Industry Regulatory Authority) website to find extensive information about fines levied on organizations who have either flaunted or failed to comply.

Examples of Non-Compliance

For instance, in September 2011, one company, Ayre Investments, was censured, fined $10,000 for non-compliance and suspended from any interaction with any FINRA member for two months. According to FINRA, “ [Ayre] failed to establish and maintain a supervisory system and establish, maintain and enforce WSPs to supervise the activities of each registered person that were reasonably designed to achieve compliance with the applicable rules and regulations… and with respect to the maintenance of electronic communications, the firm completely failed to establish, maintain and enforce any supervisory system and/or WSPs reasonably designed to ensure that all business-related emails were retained.”

Similarly, the company H. Beck, Inc. was fined: “[H. Beck, Inc.] submitted a Letter of Acceptance, Waiver, and Consent in which the firm was censured, fined $150,000, and the firm’s president is required to certify to FINRA in writing within 30 days of the issuance of the AWC that the firm currently has in place systems and procedures reasonably designed to achieve compliance with the laws, regulations, and rules concerning the preservation of electronic mail communications.”

The penalties for non-compliance are both serious and stout.

As we’ve explained, one of the best ways to avoid costly and inconvenient non-compliance findings is to implement email archiving. In review, the primary benefits are:

  • Automated compliance
  • Increased storage capacity
  • Improved system performance
  • Fast searching of databases
  • Protection from litigation

Since email archiving quickly moves your organization toward total compliance, isn’t it time start considering implementation for your company?

For more information on regulatory filings by FINRA, visit the link.

For more information on compliance and how you can protect yourself,

Read our free whitepaper on the Steps To Compliance

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