Over $2 million worth of fines paid for WORM violations by HSBC, Mass Mutual and Allianz – 7th July 2017

Three large financial services firms, HSBC, Allianz and Mass Mutual, recently paid fines totaling $2.4 million to the Financial Industry Regulatory Authority for failure to store millions of customer documents in required non-erasable formats. With data security becoming an increasingly important examination priority, FINRA has cited a dozen firms over the past year for violations of the so-called WORM format required by the self-regulatory body. The failure to use WORM, not to be confused with the computer virus “worm”, is a format that refers to “write-once, read-many” data storage in non-erasable form that cannot be altered. HSBC cited for 12 million non-compliant records HSBC’s wealth management unit was cited and fined $1.5 million for allegedly storing more 12.36 million documents on transactions in funds, equities and fixed income during a period running from May 2003 to the present.

 

 

 

Richard Satran, Regulatory Intelligence