SEC Modernizes Record-Keeping Rules – Journal of Accountancy

By Bryan Strickland

The SEC on Wednesday passed amendments that modernize how brokers and other entities are allowed to keep electronic records they share with the commission.

The amendments update rules passed in 1997 that required the records in question to be saved in a write-once/read-many format, not so affectionately known as WORM.

“Since the 1930s, record-keeping requirements have been essential to maintaining market integrity and the SEC’s job as an on-the-spot cop. Today’s rule changes will facilitate the ability to the SEC to review and inspect the records in accordance with modern technology,” SEC Chairman Gary Gensler said in a statement. Press release.

The Amendments provide more flexibility to broker-dealers and non-bank securities swap dealers and primary participants in securities swaps.

The final amendments, which will take effect 60 days after their publication in the Federal Registerimpact Rules 17a-4(f) and (j) and 18a-6(e) and (g) of the Securities Exchange Act of 1934. The amendments allow for an “audit trail alternative” to WORM, so long as the archiving system preserves the records in a manner that permits the recreation of an original record if it is altered, overwritten, or erased.

— To comment on this article or suggest an idea for another article, contact Bryan Strickland at [email protected]

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