System failure? System backup!

Regulators tag team RIAs, Broker-Dealers, and FCMs
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Just last summer Timothy Massad, chair of the U.S. Commodities and Futures Trading Commission (CFTC), raised the issue of disaster recovery. Citing initiatives by the Committee on Payments and Market Infrastructures (CPMI), and the International Organization of Securities Commissions (IOSCO), he reported that his organization for one is making financial market security and recovery a “high priority.”

Are you recoverable?

According to an article by Reporter Bruce Kelly in the most recent issue of Investment News, a Sunday night technology meltdown caused Cetera Financial Group’s systems to crash leaving its 9,000 financial advisers with limited access to or an ability to manage client accounts on Monday and Tuesday.

The company had to shut its entire system down, forcing advisors who could do so to trade through “alternative means.” Back up now, Joseph Kuo, a spokesperson for the company, said Cetera is “actively reviewing existing platforms and resources to prevent any recurrence of this issue.” Locking the barn door after…?

If the technology crashes…chose different technology, or…

…have a better back-up plan. Cetera’s crash is just one among many such occurrences.

According to Kelly’s report, “It’s common for large brokerage firms to experience problems when integrating systems. Morgan Stanley and LPL Financial have also experienced such problems…”

Why is that?

Why is it that large brokerage firms are more likely to experience problems when integrating systems? Is it that smaller firms are smarter? Is it that they are more likely to avail themselves of newer, better technologies than their larger, less flexible compatriots? Or is it that with so many moving parts under one umbrella (Cetera Financial Group has seven different broker-dealers), large firm compliance and IT departments are likely to also be juggling a host of different compliance and records archiving systems instead of a single, unified platform?

By Tuesday, Cetera determined that the reason for the crash was hardware-related and the comp any had to shut its entire system down and reboot. Ouch.

Time for a change?

Here’s our self-serving promotion:

Patrina’s Compliant Data Capture + File Archiving system is a complete, SEC Rule 17a-4 and CFR 1.31 compliant solution delivering safe, secure compliant archiving on a single platform.

Whether they store their data locally within their own network or on the cloud with providers like Google Drive, Patrina helps large and small RIAs and Broker-Dealers clients keep their data safe, secure, and archived off-site.

And that’s just one piece of the pie.  Because being able to access your data when you need it is not just a matter of archiving electronic records for the regulators. It’s archiving and retrieving those records to share with your team when your systems go down.

Protect your stuff. Protect yourself.

Record-keeping rules and regulations are constantly evolving. Having a trusted partner to help you navigate these changes is a must.  What platform are you using?

Let’s talk (212-233-1155). Ask about Patrina’s comprehensive compliance solutions, compliant records archiving, and even data capture/storage/retrieval specifically designed for the financial services community. Be safe, secure, compliant.

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