Ch 5 Deck 9 Flashcards
Broker dealers that are corporations must keep lifetime records of
articles of incorporation
minutes from BOD meetings
Stock certificate books created prior to inception
Broker dealers that are partnerships must keep lifetime records of
partnership articles
Blotter records must be kept for
6 years (2 years easily accessible)
general ledger records must be kept for
6 years (2 years easily accessible)
Stock records must be kept for
6 years (2 years easily accessible)
customer statement records must be kept for
6 years (2 years easily accessible)
new customer account forms must be kept for
6 years (2 years easily accessible)
margin agreements must be kept for
6 years (2 years easily accessible)
information related to opening and closing customer accounts must be kept for
6 years (2 years easily accessible)
Firm stock records shows
securities held by firm
ownership of those securities
Easily accessibility for records usually means
on site at main office
account information records must be kept six years from
the CLOSE of the account
Communications related to BD business must be kept
3 years (2 years easily accessible)
General financial records must be kept for
3 years (2 years easily accessible)
advertising must be kept for
3 years (2 years easily accessible)
FOCUS reports must be kept for
3 years (2 years easily accessible)
U-4’s, U-5’s and fingerprints must be kept for
3 years (2 years easily accessible)
Customer trade confirmations must be kept for
3 years (2 years easily accessible)
Order tickets must be kept for
3 years (2 years easily accessible)
Associated person’s compensation records must be kept for
3 years (2 years easily accessible)
Firm’s compliance and procedures manual must be kept for
3 years (2 years easily accessible)
Written agreements must be kept for
3 years (2 years easily accessible)
General financial records include
bank statements
bills
cancelled checks
Advertising is now called
retail communications
SAR filings must be kept for
5 years (2 years easily accessible)
Anti-money laundering documents must be kept for
5 years (2 years easily accessible)
Customer complaints must be kept for
4 years (2 years easily accessible)
Records kept for one of these numbers of years:
3, 5, 6, lifetime (4 customer complaints)
A FINRA member may hold customer mail if they have
written instructions to do so
If a customer is traveling domestically, FINRA member may hold their mail for
up to 2 months
If a customer is traveling abroad, FINRA member may hold their mail for
up to 3 months
