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FINRA Fines Firm $1.2 Million - Failure to Archive Email


FINRA fines MetLifeThe regulatory environment surrounding email archiving is becoming increasingly more stringent. Large and small financial services firms alike are in danger of heavy compliance fines for email retention and review failure. FINRA fined Metlife $1.2 million in December of 2009 for failing to review emails. A smaller firm was fined $350,000 for email retention failure. The law group, Bressler, Amery & Ross released a Securities Law Alert analyzing these fines and explaining the financial services regulations surrounding email archiving & e-discovery.

Click here to read the Securities Law Alert

In assessing the Metlife fine, FINRA found especially significant that the failure to properly review email correspondence lead to the firm missing "clear indications" of representatives' violations of the firm's outside activities policies. In one case, the failure to properly review emails allowed a $6 million fraud to go undetected for several years.

This particular case illustrates the need to use an email archiving system with strong capture and review capabilities for email correspondence.

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