9.3.2. Preservation of Books and Records
Records must be maintained for various periods of time, as follows.
Lifetime Requirement. Every broker-dealer, except for bank dealers, must preserve during the life of the enterprise:
- • All partnership articles, articles of incorporation, or charters
- • All minute books of board or partnership meetings
- • All stock certificate books
Six-Year Minimum Requirement. Brokers, dealers, and municipal securities dealers must preserve the following records for a period of not less than six years:
- • Blotters
- • General ledgers and customer ledgers
- • Securities records
- • Records concerning primary offerings (e.g., underwriting agreement, syndicate letter)
- • Records of customer complaints
- • Financial records subject to the net capital rule
- • Written record of all designated Municipal Securities Principals and their responsibilities
- • Political contributions records
- • Records of gifts and gratuities and compensation for services performed
- • Consultant agreement records
- • Records of secondary market trading accounts
Four-Year Minimum Requirement. Most firms must preserve the following records for at least four years. Bank dealers, including those municipal securities dealers that are a subsidiary or division of a bank, must preserve them for three years. The records include:
- • Subsidiary records
- • Records of put options and repurchase agreements
- • Records of securities in transfer and securities borrowed and received
- • Records of agency orders, executions, and cancellations, including discretionary orders
- • Records of principal transactions, whet