The Financial Industry Regulatory Authority (FINRA) fined Scottrade $2.6 million for failing to retain a large number of securities-related electronic records in the required format and for failing to retain certain categories of outgoing emails. FINRA also claimed that Scottrade did not have a reasonable supervisory system in place to achieve compliance with certain records rules. Scottrade had a data breach in early October of this year that targeted the names and street addresses of 4.6 million clients. FINRA and federal securities laws require that business-related electronic records be kept in non-rewritable, non-erasable format, referred to as “Write-Once, Read-Many” or “WORM” format to prevent alteration.
Disclaimer
The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.
