Ch 5 Deck 9

Question 1

Broker dealers that are corporations must keep lifetime records of

Answer 1

articles of incorporation
minutes from BOD meetings
Stock certificate books created prior to inception

Question 2

Broker dealers that are partnerships must keep lifetime records of

Answer 2

partnership articles

Question 3

Blotter records must be kept for

Answer 3

6 years (2 years easily accessible)

Question 4

general ledger records must be kept for

Answer 4

6 years (2 years easily accessible)

Question 5

Stock records must be kept for

Answer 5

6 years (2 years easily accessible)

Question 6

customer statement records must be kept for

Answer 6

6 years (2 years easily accessible)

Question 7

new customer account forms must be kept for

Answer 7

6 years (2 years easily accessible)

Question 8

margin agreements must be kept for

Answer 8

6 years (2 years easily accessible)

Question 9

information related to opening and closing customer accounts must be kept for

Answer 9

6 years (2 years easily accessible)

Question 10

Firm stock records shows

Answer 10

securities held by firm

ownership of those securities

Question 11

Easily accessibility for records usually means

Answer 11

on site at main office

Question 12

account information records must be kept six years from

Answer 12

the CLOSE of the account

Question 13

Communications related to BD business must be kept

Answer 13

3 years (2 years easily accessible)

Question 14

General financial records must be kept for

Answer 14

3 years (2 years easily accessible)

Question 15

advertising must be kept for

Answer 15

3 years (2 years easily accessible)

Question 16

FOCUS reports must be kept for

Answer 16

3 years (2 years easily accessible)

Question 17

U-4’s, U-5’s and fingerprints must be kept for

Answer 17

3 years (2 years easily accessible)

Question 18

Customer trade confirmations must be kept for

Answer 18

3 years (2 years easily accessible)

Question 19

Order tickets must be kept for

Answer 19

3 years (2 years easily accessible)

Question 20

Associated person’s compensation records must be kept for

Answer 20

3 years (2 years easily accessible)

Question 21

Firm’s compliance and procedures manual must be kept for

Answer 21

3 years (2 years easily accessible)

Question 22

Written agreements must be kept for

Answer 22

3 years (2 years easily accessible)

Question 23

General financial records include

Answer 23

bank statements
bills
cancelled checks

Question 24

Advertising is now called

Answer 24

retail communications

Question 25

SAR filings must be kept for

Answer 25

5 years (2 years easily accessible)

Question 26

Anti-money laundering documents must be kept for

Answer 26

5 years (2 years easily accessible)

Question 27

Customer complaints must be kept for

Answer 27

4 years (2 years easily accessible)

Question 28

Records kept for one of these numbers of years:

Answer 28

3, 5, 6, lifetime (4 customer complaints)

Question 29

A FINRA member may hold customer mail if they have

Answer 29

written instructions to do so

Question 30

If a customer is traveling domestically, FINRA member may hold their mail for

Answer 30

up to 2 months

Question 31

If a customer is traveling abroad, FINRA member may hold their mail for

Answer 31

up to 3 months