RIA Compliance and Practice Management Blog

It’s no secret the Securities and Exchange Commission (SEC) has focused in on advisory firms complying with SEC Rule 204-2, which includes specific archiving requirements for all books and records.

In a now somewhat infamous case, the SEC fined firms over $1.1 billion for failing to “maintain and preserve electronic communications.” 

And it would appear the SEC’s 2023 focus will be no different, with the SEC already bringing a case on a similar record keeping basis. In light of the renewed focus being placed on SEC Rule 204-2, this blog will highlight some of the key compliance archiving requirements for RIAs in 2023 and beyond.

Achieving compliance with SEC Rule 204-2: A highlight of compliance archiving requirements

First things first, what exactly needs to be archived in order to comply with SEC Rule 204-2? In short, all client communications and advertising for the past five years. This can and likely should include:

• Email archiving.
• Social media archiving.
• Website archiving.
• “Off channel” communications archiving.

Should you be just starting out in your RIA journey, or if you are looking for a refresher on best practices and procedures for archiving, follow these tips to ensure you meet and maintain compliance archiving requirements:

• Don’t simply rely on backing up your systems as a means of archiving: Backups protect your data with a copy of that data in case it’s lost, however, archiving is designed for long-term storage of data.
• Implement policies and procedures specific to communications archiving. This should include:
  • How you’ll archive communications.
  • What you’ll use to archive.
  • When you’ll review and update.
• Incorporate technology to automate the manual and tedious processes. A good communications archiving solution will enable you to efficiently and effectively archive all emails, website blog posts, social media posts and more.
• Don’t let your compliance archiving solution turn into a silo. If you’re like most advisers, all of your client communications run through your CRM — so be sure to integrate your CRM with your archiving system to get the full automation benefits.
• Don’t just set it and forget it. Your RIA firm should, at a minimum, be reviewing your archiving policies and procedures to ensure there are no short comings or red flags which could damage your firm.
• Knowing what to archive and what not to archive can be a tedious process, wrought with potential for error. Set up an archiving solution that automatically copies every email, post and digital update to ensure all bases are covered.