Four-Year Minimum Requirement
Municipal securities dealers 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, whether for own account or customer accounts
- • Copies of confirmations and periodic statements
- • Records of personal and financial information for each retail customer account
- • Records of aggregate indebtedness, financial statements, and money balances of all brokerage accounts
- • Business records, including checkbooks, bank statements, wire transfers, bills receivable or payable, written and electronic communications received and sent, all written agreements entered into, and all powers of attorney
- • All fingerprinting records
- • Records required by Rule G-32
- • Written authorization required to obtain a negotiable paper drawn from a customer’s account; however, this provision shall not require maintenance of copies of negotiable instruments signed by customers
- • Records of each advertisement from the date of each use
- • Records of authorization to draw from a customer’s account
- • Records of written supervisory procedures and supervisory controls
- • Records indicating compliance with continuing education requirements
Dealers and municipal advisors must keep all books and records for ready inspection by any regulatory authority having jurisdiction over them. For the first two years, the records must be maintained and preserved in an easily accessible place, after which they must be accessible to regulators within a