August 21, 2025
In Financial Services, Compliance Isn't Optional
For financial services firms, compliance isn't just a legal requirement — it's a business imperative. One misstep with data security or a failure to comply with FINRA or SEC regulations can lead to severe penalties, reputational damage, and lost client trust.
That's why successful financial firms across the Twin Cities are rethinking their approach to IT. It's no longer about fixing issues when they arise. It's about preventing problems in the first place, aligning IT with compliance frameworks, and working with a partner who understands the high-stakes regulatory landscape.
At Veracity Technologies, we've helped financial firms protect data, pass audits with zero deficiencies, and operate confidently for over 30 years. Here's what your firm needs to know to stay ahead of today's regulatory IT demands — and how to build the right technology foundation.
The Financial Industry's Unique IT Burden
Financial institutions—especially RIAs, broker-dealers, and investment advisors—operate under a microscope. With oversight from the SEC and FINRA, you're expected to protect sensitive data, demonstrate risk management maturity, and prove compliance through rigorous audits.
Key Compliance Pressures
- FINRA Rule 4370 (Business Continuity Plans): Requires detailed, regularly updated plans for business continuity and disaster recovery.
- SEC Regulation S-P: Mandates that financial institutions implement policies to safeguard customer records and information.
- SEC Cybersecurity Rule (July 2023): Requires firms to disclose material cybersecurity incidents within 4 business days and maintain internal protocols to identify and mitigate cyber risk.
- SEC Cybersecurity Disclosure Requirements: Public companies must now report on risk governance, cybersecurity policies, and board oversight mechanisms.
Failure to comply isn't theoretical—it's expensive. Firms have faced multi-million dollar penalties for lacking adequate safeguards, incident response plans, or vendor oversight.
Why Generic IT Support Doesn't Cut It
A typical MSP might be able to reset passwords or troubleshoot your network, but that's not enough for a financial firm. You need more than a helpdesk — you need a partner with deep compliance experience and a proactive approach.
Common Gaps with Non-Specialized Providers
- No knowledge of regulatory frameworks: Generic providers rarely understand FINRA and SEC nuances, let alone how to prepare for an audit.
- Reactive support: Waiting for issues to arise before acting means potential non-compliance is discovered too late.
- No documentation processes: Incomplete or missing logs can fail to satisfy auditors.
- Weak cybersecurity posture: Outdated systems, insufficient segmentation, and missing controls increase your risk of breaches — and violations.
At Veracity, we've seen financial firms come to us after failed audits or security incidents caused by underqualified IT vendors. Our SOC 2 certification and decades of experience are built to close these exact gaps.
The Role of Proactive IT in Financial Compliance
You don't need more tools. You need a system and a team that keeps you ahead of risk — while delivering measurable value to your business.
How Proactive IT Support from Veracity Makes the Difference:
24/7 Monitoring and Threat Detection
Our AI-powered security systems detect suspicious activity before it escalates. With real-time alerts and human oversight, threats are neutralized before they reach client data or trigger disclosures under the SEC cybersecurity rule.
SOC 2-Aligned Processes
Because we're SOC 2 certified ourselves, we operate using the same compliance standards you're expected to meet. That means:
- Encrypted data handling
- Detailed access controls
- Quarterly audit-prepared reporting
- Documentation that satisfies SEC and FINRA auditors
Strategic Technology Planning via vCIO
Our virtual CIOs work with your leadership team to align your tech infrastructure with evolving regulations, business goals, and audit requirements. Every quarter, you'll receive:
- Security posture updates
- Compliance roadmap adjustments
- Budget guidance for upcoming IT needs
Secure Communication Systems
We configure, manage, and audit secure messaging, email encryption, and document handling protocols — a key requirement for FINRA and SEC oversight. You'll know who accessed what and when — and prove it.
Business Continuity & Disaster Recovery (BCDR)
Your data can't afford downtime. Our BCDR strategies meet FINRA Rule 4370 head-on, ensuring your operations can quickly resume after a disruption with complete audit trails and documented recovery plans.
Preparing for Audits with Zero Deficiencies
Audit season doesn't have to be stressful. Veracity builds compliance into your daily operations so audit readiness becomes a byproduct of how you work — not a last-minute scramble.
What This Looks Like:
- Internal access audits every quarter
- Automatic logging and archiving of email, documents, and access requests
- User permission reports that match FINRA/SEC standards
- Incident response plans with tested drills and real-time documentation
- Vendor management aligned to risk management policies
One financial client recently passed their regulatory audit with zero deficiencies — thanks in large part to Veracity's SOC 2-aligned documentation and structured IT systems. Their auditors noted the clarity, completeness, and consistency of the technology framework.
Why Financial Firms in the Twin Cities Trust Veracity
We're not new to financial services — we've built our business around protecting them.
What Sets Veracity Apart:
- Specialization in High-Compliance Industries: Finance isn't just another vertical to us. It's our core.
- SOC 2 Certified Processes: Less than 10% of IT firms meet this standard. We use it as our baseline.
- 98% Client Retention Rate: We build long-term relationships through consistent performance and proactive care.
- Unlimited Onsite and Remote Support: Your issues don't wait — and neither do we.
- Strategic vCIO Engagements: Align IT with business goals, not just break/fix tasks.
We know the regulations. We know the risks. And we know how to make IT not just compliant — but a competitive advantage.
FAQs: FINRA & SEC IT Compliance for Financial Firms
Q: How often should we update our cybersecurity protocols?
A: Regular updates are critical. We recommend reviewing your full cybersecurity strategy quarterly, with real-time adjustments as threats or regulations evolve — especially with SEC cybersecurity disclosure requirements tightening.
Q: What if we already have internal IT staff?
A: We offer co-managed IT support, complementing your team with compliance expertise, strategic planning, and cybersecurity tools they may not have bandwidth for.
Q: Can you help us prepare for a FINRA or SEC audit?
A: Absolutely. From documentation readiness to technical safeguards and risk assessments, Veracity provides everything you need to walk into audits with confidence.
Don't Wait for a Compliance Crisis
Let's face it: SEC and FINRA rules are only getting stricter. The time to modernize your IT — and protect your firm — is now.
Partner with a SOC 2-certified MSP that already knows the terrain.
Click Here or give us a call at 952-941-7333 to Book a FREE Consult
Key Takeaways
- Financial services firms are under immense regulatory pressure from FINRA and the SEC.
- The new SEC cybersecurity rule and disclosure requirements demand clear governance, fast incident response, and airtight documentation.
- Most MSPs are unprepared to support regulated financial firms — Veracity is not.
- Our SOC 2-certified, proactive IT support empowers financial businesses to meet compliance goals, reduce risk, and focus on growth.
- With Veracity, your IT becomes audit-ready, threat-resistant, and built for the future.
