In a significant move to assist Financial Industry Regulatory Authority (FINRA) firms in achieving compliance with SEC Rule 17a-4, AdvisorVault has announced a complimentary 17a-4 Gap Assessment. This initiative aims to help firms identify and address compliance gaps within their Microsoft 365 environments, ensuring adherence to stringent regulatory requirements.
Understanding SEC Rule 17a-4
SEC Rule 17a-4 mandates that broker-dealers and other financial entities retain electronic records in a non-rewriteable, non-erasable format for specified periods, typically up to seven years. This rule is designed to ensure the integrity and availability of critical financial records for regulatory audits and examinations.
Challenges in Achieving Compliance
Many FINRA-regulated firms have transitioned to cloud-based platforms like Microsoft 365 for their operational needs. However, by default, Microsoft 365 does not meet the specific requirements of Rule 17a-4. Key challenges include:
- Data Retention and Archiving: Ensuring that emails, documents, and communications are archived in a compliant manner.
- Cybersecurity Measures: Implementing security protocols that meet FINRA's standards to protect sensitive information.
- Designated Third Party (D3P) Services: Engaging a D3P to provide the necessary attestation letters and to oversee the proper archiving and retention of records.
To address these challenges, AdvisorVault offers a comprehensive 17a-4 Gap Assessment at no cost. This assessment evaluates a firm's current Microsoft 365 setup to identify areas where compliance requirements are not being met. The assessment focuses on:
- Migration to Microsoft 365: Ensuring that all in-house data is fully migrated to Microsoft 365, consolidating records, and configuring services like OneDrive, SharePoint, Exchange Online, and Teams for compliance.
- Cybersecurity Implementation: Applying FINRA-level cybersecurity policies, including monitoring for unusual activities, enabling audit logging, and setting up alerts for compliance officers.
- Cloud Archiving Solutions: Implementing archiving solutions that store records in a 17a-4 compliant manner, allowing for easy retrieval and supervision.
- D3P Services: Providing the necessary third-party attestation letters and ensuring records are preserved in a non-rewriteable format for the required retention period.
AdvisorVault has partnered with Compliant Workspace to offer a streamlined path to 17a-4 compliance on Microsoft 365. This collaboration provides firms with a comprehensive solution that includes:
- Full Migration Services: Transitioning all data and communications to Microsoft 365.
- Cybersecurity Add-ons: Deploying security measures that meet FINRA's standards, including 24/7 monitoring and threat detection.
- Archiving Plugins: Ensuring that all electronic records are archived in compliance with 17a-4 requirements.
Conclusion
AdvisorVault's free 17a-4 Gap Assessment represents a proactive step toward helping FINRA firms navigate the complexities of regulatory compliance within cloud environments. By identifying and addressing compliance gaps, firms can ensure they meet SEC Rule 17a-4 requirements, thereby safeguarding their operations and maintaining regulatory standing.
Source: The Malaysian Reserve https://themalaysianreserve.com/2025/07/24/advisorvault-offers-17a-4-gap-assessment-free-getting-finra-firms-compliant-on-microsoft-365/
