KANATA, Ontario – October 16, 2017 — HubStor Inc., the leading provider of data-aware cloud storage solutions, today announced that its immutable storage functionality had undergone a third-party assessment of its ability to assist broker-dealers with U.S. Securities and Exchange Commission (SEC) Rule 17a-4 compliance. The evaluation of HubStor’s fitness for write-once-read-many (WORM) storage on the Microsoft Azure cloud platform is available in a newly released legal opinion white paper.
David Smyth, attorney at Brooks Pierce McLendon Humphrey & Leonard LLP, assessed HubStor’s fitness and authored the legal opinion. Mr. Smyth has an extensive background with the SEC and FINRA, both as a prosecutor at the Commission and in representing corporations and individuals in complex litigation and investigation matters.
The legal opinion white paper provides an in-depth review of how HubStor meets the requirements for WORM storage compliance, including:
- Non-Rewritability / Non-Erasability
- Data Quality Verification and Accuracy
The compliance technology market is transforming with the growing adoption of cloud-based software and platforms. Financial services organizations must support record keeping for an extensive array of data types and sources.
The SEC and FINRA have strict requirements for record keeping. Broker-dealers can face investigation and fines for failing compliance.
Moreover, HubStor and other such cloud technologies also present opportunities for broker-dealers to meet their compliance obligations in a manner that is more convenient and cost-efficient than is possible with previous generation storage and archiving products on-premises.
“HubStor has a growing client base of broker-dealers on the Microsoft Azure cloud platform that are using our service to maintain ‘books and records’ and other sensitive data with WORM storage compliance,” said Geoff Bourgeois, CEO, HubStor. “Our WORM storage capabilities are available for content sources such as email, application data such as call recordings, Windows/CIFS/NFS-based file systems, and Microsoft Office 365 data sources like SharePoint Online, OneDrive for Business, Groups, Team Sites, and the Unified Audit Log.”
About the WORM Storage Legal Opinion
David Smyth previously served as an Assistant Director in the Securities and Exchange Commission’s Division of Enforcement. While at the SEC from 2005 to 2011, he spearheaded high-profile investigations and litigation involving insider trading, financial statement and disclosure fraud, the Foreign Corrupt Practices Act, investment advisory fraud, auditor misconduct and broker-dealer misconduct. David was also instrumental in establishing and supervising the Enforcement Division’s Office of Market Intelligence, created in the wake of the Bernard Madoff scandal to revamp the SEC’s process for receiving and analyzing whistleblower tips regarding potential violations of the federal securities laws. David’s work in hedge fund investigations was the origin of the SEC’s Aberrational Performance Inquiry.
The legal opinion white paper is downloadable in PDF format here (requires email).
Note: The factual assertions in this white paper are based on extensive interviews of senior HubStor personnel and demonstrations of HubStor software. In this white paper, Brooks Pierce McLendon Humphrey & Leonard LLP is not providing legal advice to its readers and the views expressed are for informational purposes only. Readers are advised to consult with both technical and legal advisors in assessing compliance with Rule 17a-4.
HubStor is Software-as-a-Service (SaaS) that enterprise clients use for secure cloud archiving, backup, data management, and WORM storage on the Microsoft Azure cloud platform. HubStor includes connectors for Windows/CIFS/NFS file system storage tiering and backup, email archiving, and Microsoft Office 365 archiving and backup.
HubStor currently serves clients, large and small, across a variety of industries in the United States, Europe, United Kingdom, Canada, Australia, and New Zealand. HubStor is a CIOReview ’20 Most Promising Azure Solution Provider in 2016’ and a member of the Microsoft Enterprise Cloud Alliance.