The Financial Industry Regulatory Authority (FINRA) recently fined five units of ING Groep NV a total of $1.2 million for failing to retain or review millions of emails.
The Financial Industry Regulatory Authority (FINRA) recently fined five units of ING Groep NV a total of $1.2 million for failing to retain or review millions of emails. The penalties highlight the importance of email retention policies and procedures, particularly for regulated companies.
According to FINRA, the firms failed to properly configure hundreds of employee email accounts to ensure that messages were retained and reviewed. In addition, four of the subsidiaries did not have systems in place to retain certain types of emails, including emails sent to distribution lists, emails received as blind carbon copies, and “cloud” email (emails sent through third-party systems). Because the emails were not retained, they were not subject to supervisory review
In addition to retention violations, FINRA also found that four of the firms failed to review millions of emails that the firms’ email review software had flagged for supervisory review. Overall, supervisory principals did not evaluate nearly six million emails flagged for review because the email review software was not properly configured.
As this case makes clear, New York and New Jersey firms regulated by FINRA must follow strict guidelines for email archiving. In fact, in announcing the fines, Brad Bennett, executive vice president and chief of enforcement, made it clear that “email retention and review continues to be an important regulatory responsibility and an issue of concern for FINRA.”
Under FINRA’s Books & Records Rule (3110),member firms are required to make and preserve accounts, records, memoranda, books and correspondence in conformity with all applicable regulations, statements, and rules under SEC 17a-3 under the Securities Exchange Act of 1934. In addition, record retention procedures must comply with SEC Rule 17a-4. Overall, keeping detailed records allows firms to clearly demonstrate that they have fulfilled both their investor and regulatory obligations.
If you have any questions about the case or would like to discuss your business’s email retention policies, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
