What FINRA and SEC compliance requires — and how backup solutions can help

Financial institutions operate in a tightly regulated environment and must comply with strict standards for data retention, accessibility, and integrity. The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) impose specific obligations on how records are created, stored, and preserved.

As regulatory expectations evolve and enforcement tightens, organizations must evaluate whether their data backup and archiving tools can support these requirements. From immutability and retention control to audit readiness and geographic flexibility, the right capabilities can help reduce compliance risk and support business continuity.

Below, we briefly outline the key requirements of SEC Rule 17a-4 and FINRA (Rule 4511 and Rule 4370) followed by the features organizations should consider when selecting a SaaS backup and archiving solution to best support them along their compliance journey.

Meeting SEC Rule 17a-4 with secure, accessible data storage 

SEC Rule 17a-4 governs how broker-dealers must retain and produce electronic records. The rule includes specific requirements such as:

• Retaining records for defined periods (often up to six years) 
• Storing records in a non-rewritable, non-erasable format 
• Ensuring records are indexed and readily accessible for search 
• Being able to produce complete, legible, and true copies promptly upon request 
• Maintaining records within or accessible from designated locations, including the United States

To align with these obligations, organizations should seek backup and archiving platforms that offer:

• Customizable retention policies that support multi-year retention requirements 
• Permanently immutable storage to prevent alteration or deletion of records once captured 
• Indexing and advanced search capabilities to facilitate timely record retrieval 
• Geographic data storage options, including U.S.-based storage to meet location-specific rules 
• Ongoing data verification to ensure integrity and audit readiness over time

These capabilities form the foundation of a data retention strategy that supports both compliance and operational efficiency.

Meeting FINRA recordkeeping expectations through backup and continuity planning

FINRA Rule 4511, along with related guidance such as FINRA Rule 4370, outlines firms’ obligations to preserve books and records, ensure accessibility, and maintain formal continuity procedures.

Key focus areas include:

• Retaining books and records as required under SEC and FINRA rules 
• Preserving records in a format that maintains accuracy and integrity 
• Ensuring records are readily accessible for audit or review 
• Maintaining a written business continuity plan, including data backup and recovery 
• Conducting due diligence when using third-party recordkeeping services 

To best support compliance with FINRA’s recordkeeping framework, consider whether your backup and recovery solution provides:

• Immutable, audit-ready backups that safeguard record integrity 
• Automated and secure capture of data from core SaaS platforms and business systems 
• Reliable search and recovery functionality to meet regulatory timelines 
• Business continuity and disaster recovery capabilities to maintain access to records even during outages 
• Support for third-party recordkeeping compliance, including documentation and audit trails for vendor oversight

These features help satisfy both the technical and procedural elements of FINRA’s requirements while also improving resilience across your data infrastructure.

A deeper dive into regulatory alignment

Both SEC Rule 17a-4 and FINRA Rule 4511 place a clear focus on secure, long-term, and verifiable retention of electronic records. While achieving compliance ultimately depends on an organization’s policies and governance, technology plays a critical supporting role.

Even if you aren’t subject to these specific regulations, you probably have similar needs in your business.  Understanding how modern SaaS backup and archiving capabilities help you meet both business and regulatory requirements is essential.

For a more detailed breakdown of how Keepit aligns with SEC and FINRA requirements, read our factsheet.