Data Retention in Financial Services: Why Getting It Right Matters
15 January 2026
Financial services firms generate and store large volumes of data every day. Client records, transaction histories, communications, audit logs and security data all fall under regulatory scrutiny. Regulators expect this information to be accurate, protected and available when required. Poor data retention practices do not just cause inconvenience. They can lead to fines, failed audits and the loss of critical evidence during investigations.
In the UK, the Financial Conduct Authority (FCA) sets clear expectations around record keeping. Firms must retain records in a way that allows them to be retrieved promptly and provided in a readable format when requested. These expectations are detailed across the FCA Handbook, including SYSC and sector specific rules.
At the same time, firms must comply with UK GDPR and the Data Protection Act 2018. These regulations require organisations to keep personal data only for as long as it is necessary and to justify retention periods. The Information Commissioner’s Office (ICO) is clear that holding data indefinitely “just in case” is not acceptable.
Balancing regulatory retention requirements with data protection obligations is a common challenge for finance firms.
The Risks of Poor Data Retention
When data retention is not properly managed, firms are exposed to several risks.
From a regulatory perspective, missing or incomplete records during an audit can quickly escalate into further investigation or enforcement action. Inconsistent retention practices also make it harder to demonstrate control and governance to regulators.
From a data protection standpoint, retaining personal data longer than necessary increases exposure if a breach occurs. The longer data is held, the greater the potential impact on customers and the organisation.
Operationally, excessive or unmanaged data drives up storage costs and makes audits more time consuming. Teams waste valuable time searching for the right records or trying to confirm whether data should still exist at all.
What Good Data Retention Looks Like
Strong data retention is structured, documented and consistently applied.
It starts with clear retention schedules that map different types of data to regulatory, legal and business requirements. These schedules should reflect FCA rules, contractual obligations and GDPR principles such as data minimisation and storage limitation.
Automation plays a critical role. Manual processes are difficult to enforce across modern IT environments, especially where data is spread across email platforms, cloud storage and multiple systems. Automated archiving and deletion helps ensure policies are applied accurately and on time.
Security must also be built in. Retained data needs appropriate access controls, encryption and monitoring while remaining easy to retrieve for audits or regulatory requests. The National Cyber Security Centre (NCSC) highlights the importance of secure data storage and access management as part of good cyber hygiene.
How Maple Helps Clients Get Data Retention Right
Maple works closely with financial services firms to turn regulatory requirements into practical, workable data retention processes.
We help clients define and implement retention policies that align with FCA expectations and GDPR requirements. This includes reviewing existing data types, identifying what must be retained, for how long, and documenting policies that clearly demonstrate compliance.
Maple also helps clients automate archiving and deletion schedules across key systems such as email, Microsoft 365, file storage and cloud platforms. Automation reduces reliance on manual processes, lowers the risk of human error and ensures outdated data is securely removed when it reaches the end of its retention period.
Security and accessibility are treated as equal priorities. Maple designs solutions that protect retained data using appropriate technical controls while ensuring it can be quickly located and produced during audits, regulatory reviews or internal investigations.
We also support firms with ongoing reviews and improvements. As regulations, systems and business needs change, Maple helps clients adjust retention policies so they remain compliant and effective over time.
Reducing Risk Through Better Data Management
Effective data retention is not just about meeting regulatory requirements. It reduces operational risk, limits exposure during security incidents and gives firms confidence when engaging with regulators.
By taking a structured, automated approach to data management, finance firms can stay compliant without creating unnecessary complexity. With the right support in place, data retention becomes a controlled, auditable process rather than a constant source of risk.
If you want to understand where your current data retention approach may fall short, Maple can help you assess, improve and maintain a compliant data management framework. Get in touch.
