Records Retention Compliance

Industry analysts estimate that more than 35,000 global regulations affect document record retention. Many are industry-specific, but no matter what industry you are in, your data must comply with the regulations. Some examples of the most critical regulations are as follows:

1. Sarbanes-Oxley Act of 2002

Passed in response to financial scandals surrounding Enron and WorldCom, this US law aims to help ensure the accuracy of financial reports. Publicly traded companies, accountants, attorneys, and even firms that intend to go public must retain electronic business records for five years, and financial data for seven years after an audit. CFOs and CEOs must personally certify the accuracy of their company’s financial results. Most large publicly-held companies should have been compliant by Nov. 15, 2004 , although the deadline has already been extended once. Smaller US firms and foreign firms operating in the US are mandated to comply by July 2005.

2. Gramm-Leach-Bliley Act of 1999

Also known as the Financial Services Modernization Act of 1999, this legislation enabled financial services companies to merge more easily – but enforced strict rules on the data of merging companies. Privacy provisions, which are already in effect, mandate that financial firms implement security plans to protect the confidentiality, integrity, and availability of customer information. The board of directors is responsible for maintaining the plan and the CEO for enforcing it.

3. Health Insurance Portability and Accountability Act (HIPAA)

Health care providers and insurance companies must protect the privacy of patient information and maintain data integrity for employees, customers, and shareholders. The final compliance deadline for HIPAA was April 2004.

4. Securities Exchange Commission Rule 17a-4

This rule was passed to adopt Gramm-Leach-Bliley provisions and requires the securities industry to maintain customer financial statements, banking records, and internal brokerage communications related to accounts for three to six years, and records must be easily accessible for two years after they are created.

5. California Senate Bill 1386

Any company or person who conducts business in California , or has customers who live in the state, must notify customers if their electronic records are compromised. The law went into effect in July 2003 and permits consumers who allege they were harmed by a breach to file class-action lawsuits for damages.

Is your company compliant with these regulations? What about the myriad other regulations that affect your industry storage?

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