In today’s financial services landscape, records management has become a complex compliance issue that firms can no longer afford to overlook.
According to Corlytics, what was once a largely manual process of storing paper documents has evolved into a critical area of regulatory risk, driven by the explosion of digital formats, jurisdictional data rules, privacy laws and a fast-evolving global regulatory environment.
The definition of records management has substantially expanded beyond simple document storage. It now encompasses digital files across email platforms, collaborative tools such as Microsoft Outlook and SharePoint, and databases spanning on-premise servers and cloud-based solutions. As FIs manage rising transaction volumes and fragmented operating models, the pressure to understand and fulfil compliance obligations has never been greater.
Regulatory frameworks across different regions add further complexity. In the EU, the General Data Protection Regulation (GDPR) dictates how personal data must be handled and stored. In the US, the Sarbanes-Oxley Act (SOX) and SEC Rule 17a-4 impose stringent mandates around record preservation, particularly for broker-dealers. Meanwhile, the UK’s FCA enforces detailed rules around record-keeping. These requirements collectively demand that records are maintained in a non-rewritable, non-erasable format and are readily accessible for defined periods.
The rising dependence on third-party cloud providers introduces new compliance risks. While external hosting can offer efficiency and scalability, it also raises challenges related to data sovereignty, cross-border data flows, contractual responsibilities, and cybersecurity. Regulators are increasingly scrutinising how firms manage records in outsourced environments, especially when the providers themselves may not align with strict regulatory demands.
Compliance professionals are now required to monitor regulatory developments across dozens of jurisdictions, adjusting policies in real time to remain aligned with shifting mandates. The lack of international harmonisation in record-keeping obligations makes it essential for institutions to maintain a dynamic, adaptable records management strategy. In some cases, laws have extended minimum retention periods—such as the US Office of Foreign Assets Control (OFAC), which recently increased its requirement from five to ten years.
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