SEC 17a-4

Summary

SEC 17a-4 and NASD 3010 were enacted to protect investors from fraudulent or misleading claims by securities dealers. SEC 17a-4 was amended in 1997 to provide procedures for the storage of electronic records. 17a-4 and NASD 3010 apply to all individuals and organizations involved in trading securities including securities firms, stock brokerage firms and banks. Firms that have violated these regulations have faced fines in excess of a million dollars.

The regulations require firms to implement specific, enforceable retention procedures which include the following:

  • Section 17a-4(f)(2) Archived messages must be time/date stamped and serialized. Each message must be assigned a unique, sequential identification number as a safeguard against tampering or deletion.
  • While most of the NASD regulations are covered under 17a-4, Section 3010 requires that supervisors have the ability to review outgoing email for noncompliant language such as a word guarantee.
  • A searchable index must be maintained with the archive and be available if requested by the regulators as spelled out in 17a-4(f)(3).
  • SEC 17a-4 (f)(3) Archived messages must be stored in duplicate. One copy must be stored in an online archive and a second copy must be stored offline on permanent, tamperproof media.

MobileMandate Key Benefits

MobileMandate is designed to support the the flow of text messaging, pin to pin, and BlackBerry® Messenger througout your organization. Our intuitive user interface and advanced reporting capabilities provides yor team with the ability to get the job done quickly, effectiviely, and efficiently.

Effective Management

  • Ensure every SMS message passing through your organization is archived and readily available

Collaboration

  • Create roles and responsibilities for managing mobile messaging

Proactive Platform

  • Build reports to find policy breaching events like wall crossing and receive alerts when those breaches happen

Evidence Supervision

  • Provide complete workflow audit trails of who has acted upon any message

Automation

  • Automate email and reports engaging users to assist with supervision

Security

  • Secure hosted content with full disaster recovery

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Vivek Kundra
CIO United States Of America

Wall Street Journal