What’s the difference Between Static Data and Dynamic Data?

To make sure data is properly protected for full compliance, it is important to understand the difference between the two main data types – static and dynamic; each requires a different approach to ensure full protection. Static data consist of things such as word documents, scanned records, PDFs and client databases. However, because static data does not change often, a proper backup solution is designed to regularly pull this data off existing disk stored in-house or in the cloud. The key is to ensure no one is accessing these files when they are being backed up for full compliance with the demands of SEC rule 17a-4. For example, it is important that users are fully logged out of programs or not accessing documents during the backup process, this way data is not in a locked state. Or if users cannot disconnect from the system, the backup software must be selected that has the intelligence to recognize locked files to make copies of them when they are in use.

On the other hand, dynamic data includes emails, text messages, social media and other files that change constantly. An effective archiving solution will take copies of dynamic data before it is entered into the system by using a forward and store method. This method essentially captures data before it enters the customer’s system, places it in the archive and then forwards it on to its final destination. Therefore, ensuring it is not modified when it enters the customers’ system. This way the long-term data archiving retention requirements of SEC rule 17a-4 are met because files are kept in their original state at all times in a secondary location with a designated third party (D3P).

Understanding the difference between static and dynamic data types is important for FINRA firms to achieve 17a-4. In particular, they need to make sure these two different data formats are properly backed up and archived, concepts such as unlocking and forwarding data to third party providers is key to achieving this.


Allan Lonz
Allan Lonz
Allan Lonz, President and CEO of AdvisorVault is a veteran in the field with over 15 years experience providing data compliant solutions to the financial industry, especially for small firms. Recognizing that very few backup vendors understood the data compliance challenges of small broker-dealer firms, Allan created AdvisorVault - a remote backup company designed to provide his customers with a solution to ensure they meet all current rules from FINRA and the SEC. It includes all the hardware and software to remotely backup, archive and ensure disaster recovery of critical electronic records such as email, books and records and all other data at head office, branch offices and remote locations in accordance with rules 17a-3 and 17a-4. With Allan’s deep understanding of technology, compliance and finance he brings a unique mix of expertise that allows him to design a complete turn-key product. Priced at one small monthly fee, this "out-of-the-box " approach takes the burden off his customers shoulders and allows them to experience complete data compliance peace of mind simply and inexpensively.