FINRA Compliance

What is FINRA Compliance?

FINRA compliance encompasses a wide range of rules that govern how broker-dealers and financial firms manage business records, customer communications, transaction logs, and supervisory documentation. Firms subject to FINRA oversight must adhere to Rule 4511, which requires the preservation of books and records in accordance with SEC Rule 17a-4, ensuring records are accurate, tamper-proof, and accessible for inspection.

What is FINRA Compliance for Scanning Financial Records?

TierFive provides secure document scanning services to financial firms. FINRA compliance encompasses a wide range of rules that govern how broker-dealers and financial firms manage business records, customer communications, transaction logs, and supervisory documentation. TierFive is both HIPAA and SOC2 certified in addition we are ISO 27001 certified. Staff is PBSA compliant background verified and passes federal e-verification. Firms subject to FINRA oversight must adhere to Rule 4511, which like compliance frameworks such as HIPAA, GDPR, FERPA, and DOL ERISA. requires the preservation of books and records in accordance with SEC Rule 17a-4, ensuring records are accurate, tamper-proof, and accessible for inspection. Failure to comply with these rules may result in regulatory penalties, audit findings, or reputational harm. For firms digitizing their paper records, working with a document scanning provider that understands and supports FINRA compliance is essential. Scanned records must retain legal admissibility, include reliable indexing and metadata, and be preserved in a manner that prevents alteration or deletion. TierFive maintains compliance with regulatory standards to best ensure proper capture, retention, and protection of financial records.

How TierFive Maintains FINRA Compliance for Document Scanning

TierFive supports FINRA-compliant scanning by applying controls and procedures aligned with SEC and FINRA recordkeeping rules. While we are not FINRA-certified—since no such certification exists—we implement safeguards to ensure that scanned financial records meet the standards expected during regulatory review. Our scanning process ensures the creation of faithful, legible, and tamper-resistant digital copies of original records. Each image is captured at high resolution and indexed according to client-specific metadata requirements. Access to files is limited to authorized personnel through documented permissions and multi-factor authentication. We maintain unalterable audit trails, and final records can be exported into WORM (Write Once, Read Many) storage environments if required for long-term retention. By aligning our practices with FINRA and SEC expectations, TierFive helps financial firms improve document accessibility, reduce physical storage costs, and pass regulatory inspections with confidence.

The Role of SEC Rule 17a-4 and FINRA Rule 4511

SEC Rule 17a-4 and FINRA Rule 4511 form the regulatory backbone for records retention in the financial sector. These rules require that broker-dealers maintain electronic records in a format that prevents tampering, includes comprehensive indexing, and can be retrieved promptly for inspection. Rules also mandate that records be retained for fixed timeframes—up to six years depending on record type—and that firms maintain supervisory procedures for records oversight. TierFive’s document scanning operations align with these rules by supporting retention policy tagging, metadata capture, immutable storage options, and strict access controls. We also provide documentation and chain-of-custody records that support regulatory inquiries or audits. Whether converting trade confirmations, customer account forms, or compliance logs, TierFive ensures that each scanned file is secure, traceable, and regulatory-ready.

Key FINRA Compliance Requirements for Secure Document Scanning

For document scanning to support FINRA compliance, each record must be an accurate and complete reproduction of the original and preserved in a tamper-resistant digital format. File access must be restricted to authorized users, with every access or modification attempt logged. Scanned documents must be properly indexed, retained for designated periods, and made available quickly for audits or inquiries. Firms must implement supervisory controls, maintain evidence of recordkeeping procedures, and ensure the use of compliant storage solutions, such as WORM drives or third-party digital vaults. TierFive supports all of these requirements through secure systems, trained personnel, and policy-aligned scanning workflows

Contact TierFive today to learn more about how we can help your financial institution reduce overhead costs securely digitize your vital financial records within the compliance requirements of FINRA. *Note if your Financial (FI) Institution has additional requirements such as SEC requirements just let us know.