Compliance Services

Financial institutions have a complex web of regulations and technologies to manage in order to stay in compliance. To successfully address all relevant aspects requires knowledge of compliance, legal and IT issues that impact regulated financial institutions. 17a-4 works with over 500 financial institutions and participates in many regulatory discussions and compliance examinations.   As such, we have a deep understanding as to the financial industry’s ‘best practices.’  As part of our consulting services, we will work with both the compliance and IT teams to address our client’s compliance requirements.


17a-4 has developed a suite of services and productions including:


Designated 3rd Party Services (Rule 17a-4(f)(3)(vii)) Letters of Undertaking and Notification

The Securities & Exchange Act (SEA) requires that electronic records be maintained in accordance with SEC Rule 17a-4(f).  It also requires that letters are filed with the Broker/Dealer’s SRO.

  • 17a-4(f)(3)(vii) – Letter of Undertaking.  This letter is prepared by the B/D’s Designated 3rd Party (D3P) that represents that the D3P will assist, if asked, in the production of the B/D’s electronic records.  It requires that the D3P understand where electronic records are retained and the methodology used to search and produce those records.

  • 17a-4(f)(2)(i) – Letter of Notification.  This letter may be prepared by the B/D or by the D3P and notifies the B/D’s SRO of its intent to deploy a system to retain electronic regulatory records.

As required by the ’34 Act designating a third party the ability to assist the SEC or other regulator should internal resources not be available, 17a-4 provides both Letters of Notification and Letters of Undertaking.  The D3P service also includes an Annual Compliance Review.


Dodd-Frank Act CFTC letter under 17 CFR 1.31

Dodd Frank imposes new recordkeeping, reporting and disclosure requirements on all Investment Advisers, Broker Dealers, and newly deemed Major Swap Participants. In all cases, registered advisers will be required to maintain records relating to their business activities as mandated by Rule 17a-4 of the Securities Exchange Act (Broker Dealers) and Rule 204-2 of the Investment Advisors Act (Investment Advisors).  We provide CFTC Letters under 17 CFR 1.31 and Dodd-Frank.


Annual Compliance Review

An opportunity to bring IT and compliance together and go through the systems that the institution is using and discuss new requirements as the institution’s business evolves.  The review encompasses any new or changed regulation, e-messaging technology or policy. Also providing an updated document to be incorporated into a broader institutional compliance document such as an Annual Review (Rule 206(4)-7), Rule 38a-1, SOX or other compliance policy document.


Electronic Repository Review

Compliance review of all of the archival, supervisory and other electronic repositories used by an institution to retain regulatory records.  Provides a comprehensive report of compliance with applicable regulatory requirements and financial industry best practices.  Offers guidance as to what technologies are best suited and most cost-effective for the institution.  Includes supervisory lexicons, supervisory policies and review guidance.


Email Disposition Checklist

The essential steps to develop and implement an email retention and disposition program.  With minimal cost and institutional risk, clients can commence the process of disposing of legacy email records. This includes procedures for IT, Legal and Compliance to leverage the technology on hand to engage in an efficient disposition policy.


Supervisory Lexicons

17a-4 works closely with over 500 clients on regulatory reviews, audits, productions and retention policy development.  Accordingly, we are continually developing lexicons that should be actively monitored.  We provide standard and custom lexicon sets with ongoing updates for supervisors to review any word or phrase recommended for incorporation.


e-Discovery Production Support

Archive search and production support services: Using wildcards, proximity, and Boolean operands.  Determining canonical name and other variations.  Verifying legal / regulatory holds.  Assisting with privilege logs and review. Formatting messages in accordance with production requirements.


17a-4, llc has bundled a number of its compliance services together into the 17a-4 Compliance Services Suite.  The 17a-4 Compliance Services Suite is available starting at $4,000 per year per broker/ dealer.

Request a Compliance Services consultation here.

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