Hands down, this is the most confusing aspect of compliance data. Yet, failing to assign a D3P may cause SEC audit failure or cause serious damage to business reputation.
for small broker-dealer firms with limited time and budget, to find the best partner to assist them with their D3P needs can be a daunting task. They need to choose a provider that can help achieve these requirements effectively -. Choosing D3P wrong can cause unnecessary burdens and rapidly increase the overall cost of compliance data
Answering the big questions on third party designated Party (D3P):
1. What is the responsibility of the broker-dealer in the choice of a data compliance partners as their D3P?
• It 'important that the broker-dealers to establish a relationship with a third party that has the ability to provide the SEC (or other securities regulators) with independent access to their electronic records are not distributed and information.
2. What are the responsibilities D3P?
• Notify the SEC (or other regulation of designated securities) in writing of their intention to comply with the third-party access, and the download function for the broker-dealer
• To provide securities regulators with information they need to download electronic documents from the broker-dealer to
required regulatory systems • to provide securities regulators with access to records and information stored on the broker-dealer systems regardless of the broker-dealer, although the broker-dealer is not cooperating with the regulator
• Store the records in a non-rewritable, non-erasable format or one that prevents them from being overwritten, deleted, or otherwise alter during its retention period required through the use of hardware and software codes
• automatically check the quality of process documents and
D3P the prerequisite is primarily designed to provide broker-dealer electronic records are kept for amount of time and can be easily recovered in the event of an audit or during regular assessments of compliance
Further advantages of D3P :.
apart from simply ensuring rules are respected 17a-3 and 17a-4 and increasing confidence during the SEC audits, D3P offers numerous other advantages:
- the D3P prevents records from being overwritten, deleted or altered. Thus giving embedded broker-dealer long-term storage for the recovery of historical data
- The D3P ensures that if the IT key personnel retire or leave, the D3P can always access current or archived data, so the D3P become part integral part of the process of the broker-dealer compliance check
- the D3P maintains compatibility with legacy systems. In the event that a broker-dealer blends, using different systems has been acquired or takes over another company, D3P will maintain the information in a standard format compatible with the new
systems - the most important thing, in case of a disaster where a broker-dealer lost all their systems or data, the D3P ensures current and historical data will be made available for the new restoration to the original location or to an alternate disaster recovery site
the third designated puts more responsibility on the broker-dealer companies and is designed to ensure a quantity of long-term stability is integrated in their strategy of compliance data. Choosing the right D3P, not only businesses achieve greater security during the SEC audit, they will also have a better chance of getting the confidence of long-term clients regarding electronic records retrieval and supervision.
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