The Financial Industry Regulatory Authority enforces strict rules to protect investors and ensure fair markets. For technology teams, this means systems must meet clear standards for recordkeeping, supervision, reporting, and cybersecurity. The rules cover every interaction with client data, every trade record, and every method you use to prove that policies are followed.
Core Recordkeeping Rules
FINRA Rule 4511 requires firms to preserve records in a durable, unalterable format. Electronic records must be stored in a way that prevents modification. They must be indexed and easily retrievable for the entire retention period, often three to six years. FINRA also points to SEC Rule 17a-4, which specifies how data should be archived and how any changes must be logged with a full audit trail.
Supervision Requirements
Supervisor obligations under FINRA Rule 3110 require firms to maintain written procedures and evidence that they execute them. This includes automated systems to detect unusual activity, logs that prove alerts were reviewed, and workflows that link business processes with compliance oversight.
Cybersecurity Standards
FINRA expects strong access controls, encryption in transit and at rest, and rapid incident response. Internal and external penetration tests are required to validate your safeguards. Failure to comply with these standards often leads to fines or forced remediation.