Published on Oct 14th, 2022 |

SEC Releases

Brief Introduction

On October 12th, the SEC voted to amend the electronic recordkeeping, prompt production of records, and third-party recordkeeping service requirements for security-based swap dealers, broker-dealers, and major security-based swap participants.

There have been unprecedented technological changes in communication over the past 20 years; these changes were made with the intention for recordkeeping rules to be more adaptable to present communication technology.

What Has Changed?

Broker Dealers are currently required to keep all electronic records exclusively in a non-rewritable, non-erasable format (write once, read many).

Now, an audit-trail alternative exists allowing greater flexibility in the creation of electronic recordkeeping systems. The audit-trail alternative is significantly more aligned with the method of electronic recordkeeping used in most industries.

Due to the amendments, the SEC also expects all electronic records to be in an easily accessible format during examinations.

Vigilant’s Final Conclusion

These new amendments allow for changes in how Broker Dealers efficiently maintain their electronic records.

The amendments are designed to modernize the rule, given technological changes over the last two decades, and to make the rule technology neutral to be able to adapt to new technologies in electronic recordkeeping.

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