There doesn’t seem to be a day that goes by without some sort of crisis occurring in the world economy. From the continuing effects of the recession of 2008, the possibility of Greece leaving the Eurozone and the damage that sanctions are doing the Russian economy, the financial industry is constantly in the spotlight.
The scrutiny that financial institutions come under is not just from the general public, but from regulatory bodies that oversee the entire industry. As email is the most common form of communication across all industries, it is of particular importance in finance as email messages often contain sensitive information During the process of a compliance audit, email always plays a critical role.
Regulatory compliance within the financial industry is spread across a number of legal Acts, some of which are quite well-known, like Sarbanes-Oxley (SOX). These Acts all show the need for businesses within the financial industry to maintain good email archives. In other words, they all need a solid email archiving solution to achieve regulatory compliance.
One important Act in finance is the Dodd-Frank Act of 2010. This gives fairly broad authority to the way that financial regulators can look at a company’s operations as whole. Regulators therefore can access the internal email communications of anyone they investigate. The best way for any business to comply with these types of requests is to have a complete and accessible email archive.
Some other important financial Acts that come into play are:
- SEC 17a (3, 4)
- NASD Rule 3110
- NYSE Rule 440
- The Investment Advisors Act
Failure to comply with these Acts often results in large fines or prison time for key individuals. Using an email archiving solution meets any regulatory requirements, avoids any monetary penalties and provide a business with substantial cost savings.
We always recommend that every business should have a dedicated email archiving solution, but for the financial industry, an archiver is absolutely essential.