Archiving these days is a big topic for the companies, as data storage can emerge as big benefit and as a big risk to a firm. How to properly archive your information and what are MiFID II archiving standards?
8 September, AtoZForex – The Markets in Financial Instruments Directive II (MiFID II) currently is closely reviewing the archiving matter, as a big number of companies are having issues to retrieve the trades with all the conversations in time.
Does your firm archive properly?
Archiving is a common technique nowadays, and a lot of firms are storing their data via companies’ platforms and emails. Moreover, most of the firms still believe that this technique increases risk, as company’s information is stored online and is easily discoverable. This could be argued as a truth fact, however, there are more things that require attention.
The large part of archiving systems usually create two or more copies of the data, which later are backed-up to guarantee the firm’s stability. Cloud-based archiving systems allow you to even have the data presented in the different locations and to change the data centers. However, with big possibilities come big risks, as lawyers are often getting somewhat confused when it comes to digital storage cases.
But the real problem actually lies in that many companies have decentralized communications around their data. The process of collecting and storing data should be a very detailed and well-maintained flow in the firm, otherwise, a number of problems around it is unavoidable.
See also: Is London the best city for FinTech?
Archiving comes as a solution, not a risk
Another point to pay attention to is the amount of information stored and the actual process of archiving. Many of archiving platforms currently allow you to store the information in parts and for a shorter time. They also give you an opportunity to set retention policies for more sensitive information for a longer period.
Some companies decide to leave the archiving decision to the individuals themselves, where this policy is quite dangerous. Users can be poorly educated on the matter of archiving mechanism as well as they can take the retention activities not seriously.
Under MiFID II archiving standards, companies are obliged to make records available to customers for the period of five years and up to seven years for regulators. The over-preservation risk is overweighed by the advantages of control over the important information and advanced efficiency.
Think we missed something? Let us know in the comments section below.