Regulatory Solutions

Designated Third Party (D3P) Compliance Service

Face your next SEC and FINRA audit with confidence

Get SEC 17a-4(f)(3)(vii) compliant

The Securities and Exchange Commission (SEC) requires broker-dealers to adhere to numerous regulations, including SEC 17a-4(f)(3)(vii), also known as the Designated Third Party for Broker Dealers. SEC 17a-4(f)(3)(vii) details critical record keeping requirements on how electronic data is stored. Broker-dealers are required by this rule to retain a designated third party who can access electronically stored information for the SEC’s review.

How Globanet gets the job done

Globanet’s Designated Third Party (D3P) service offers a safe, secure and compliant solution. Globanet assists financial institutions in meeting the SEC’s and FINRA’s requirements. Users who have D3P have their data continuously available, which helps achieve compliance.

Globanet’s comprehensive environmental plans not only satisfy the independent third-party requirement, but also help uncover system and configuration issues in advance of an audit. Globanet’s detailed methodology involves analyzing your compliance status with record archiving and retrieval procedures to the SEC, FINRA and/or other regulatory authorities.

Globanet’s solution works with any WORM compliant (write once, read many) storage application, regardless of whether it is on-premises or in the cloud. Globanet will work with your technical team to guide us through your network and access the systems and records we have been asked to cover.

The result is peace of mind and assurance that your firm has satisfied these requirements in a secure and reliable manner.

Globanet’s D3P service includes:

  • All the documentation needed to file with the SEC and other self-regulatory organizations.
  • A Letter of Intent which is proof you are working towards a Letter of Undertaking.
  • A Letter of Undertaking for repository.
  • A yearly update that goes through a full cycle of the download procedure to cover any infrastructure changes.
  • An annual test and report that shows compliance and validates our ability to perform and access on behalf of the regulators.

Make sure your D3P service provider can…

  • Have documented procedures for accessing data in your system, including the types of data that are subject to regulations
  • Create a System Configuration Plan (SCP) for each system
  • Have a qualified and experienced systems analyst review and validate your System Configuration Plan
  • Enjoy the credibility of partnering with a Fortune 500 provider of designated third-party services
  • Have the security of a provider with the longevity and stability you need to ensure that the designated third-party services are there when needed

 Two forms of testing to best meet your needs:

Onsite: Globanet can send an analyst to your facility to perform on-site testing.

Online: Globanet can access your system online after you provide remote access.

Giving you the protections the SEC requires:

  • You don’t want your company to be front-page news for the wrong reasons.
  • Your customers only want to work with broker-dealers they can trust.
  • You need to show compliance with SEC Rule 17a-4(f)(3)(vii).
  • FINRA auditors are asking for proof that broker-dealers have established this important designated third-party relationship.

To learn more, contact us or request a quote for your specific requirements.

Contact Us Request a Quote