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Our Take Blog

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Our Take Blog
BDs Fined $1.2 Million for Failing to Retain/Review E-mails

BDs Fined $1.2 Million for Failing to Retain/Review E-mails

An affiliated group of broker-dealers agreed to pay a $1.2 Million fine for failing to retain and review e-mails.  FINRA alleges that the firms failed to review nearly 6 million e-mails that their systems flagged for supervisory review.  According to FINRA, the firms’ systems’ default settings removed e-mails from the review queue after a certain period of time even if the e-mails had not been reviewed.  FINRA also charges that the firms failed to properly archive e-mails housed on third party servers and failed to properly set up other accounts for review.
OUR TAKE: The sheer numbers involved here show how hard it is for firms to comply with the e-mail retention and review requirements.  We believe the regulators should consider some bright line tests around e-mail reviews that make sense in an electronic world.  

http://www.finra.org/Newsroom/NewsReleases/2013/P207604

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