In some firms, data backup (or backup redundancy) is not viewed as a necessity. However, government regulations may disagree. In the case of Citigroup, a business unit failed to retain millions of emails during an email archival system upgrade. Email retention is a requirement by securities industry rules. Citigroup is now paying out $750,000 in fines to the Financial Industry Regulatory Authority.
The problem at Citigroup Global Markets Inc. occurred during an upgrade of its email archiving system between October, 2008 and late December, 2009, the settlement, dated Dec. 2, said.
Citigroup’s lapse “potentially impacted the Firm’s ability to respond to email requests in FINRA investigations and other matters,” the settlement said.
Citigroup neither admitted nor denied FINRA’s findings.
FINRA noted in the settlement that Citigroup self-reported the problem to the Wall Street watchdog. Industry rules require brokerages to capture and save electronic communications for three years.
“Citi takes matters of email retention very seriously,” a spokeswoman said in a statement. “We self-reported this issue to FINRA, conducted a thorough investigation and adopted enhancements to our systems and procedures. We are pleased to have settled this matter,” she said.
When considering cloud backup solutions for your business, keep in mind that the most common form of business data lost is customer data, and most data loss is unintentional – as in the case of Citigroup. Click here to learn more about business cloud backup options.