The Financial Industry Regulatory Authority fined 12 financial institutions a total of $14.4 million for improperly storing electronic broker-dealer and customer records, Hunton & Williams' Privacy and Information Security Law Blog reports. FINRA found the 12 firms did not store the business-related electronic records in a “write once, ready many” format. FINRA’s news release on the penalties stated “each of these 12 firms had WORM deficiencies that affected millions, and in some cases, hundreds of millions, of records pivotal to the firms’ brokerage businesses, spanning multiple systems and categories of records.” The fines ranged from $500,000 to $4 million. “These disciplinary actions are a result of FINRA’s focus on ensuring that firms maintain accurate, complete and adequately protected electronic records,” said FINRA Executive Vice President and Chief of Enforcement Brad Bennett.
If you want to comment on this post, you need to login.