The growing usage of external data storage has prompted Hong Kong’s Securities and Futures Commission to issue a note demanding easier access.
The note targeted firms with no duplicate records based at its premise, stressing that the regulators had «expectations for the mitigation of cyber and operational risks when the electronic data storage is outsourced to an EDSP (external electronic data storage)».
«In particular, the circular emphasizes that the authenticity, integrity and reliability of regulatory records, as well as the ability to access them promptly, are crucial if the records are required to be produced in legal proceedings initiated by the SFC or the Department of Justice,» the note added.
Popular Data Storage
The regulator acknowledged growing popularity in the usage of external data storage, citing benefits such as scalability and low costs. It defined EDSP as providers of cloud services, conventional server storage and other forms of virtual storage, alongside technology services that generate information based on the data received.
«More financial institutions are using external electronic data solutions, including public and private cloud storage,» said SFC CEO, Ashley Alder. «These services offer benefits such as scalability and cost savings, but firms which use them must ensure that the SFC’s access to regulatory records is not restricted or otherwise undermined.»
