3.1.2.2.5. Three-Year Records
Most other records must be retained for three years. They include:
• A memorandum of each brokerage order given or received for the purchase or sale of securities for customer and firm accounts. This memorandum must include the following:
» Terms and conditions of the order
» Account for which it was entered
» Time the order was received
» Time of entry
» Price at which executed
» Identity of each associated person, if any, responsible for the account
» Identity of any other person who entered or accepted the order on behalf of the customer
» Time of execution or cancellation
• A memorandum of each purchase and sale for the firm’s account. This must show the same information as above.
• Copies of customer confirmations and copies of notices of all other debits and credits for customer accounts.
• Authorization records to draw funds from a customer’s accounts using a check or another negotiable instrument if the authorization is separate from the check. These must be kept for three years from the check’s expiration.
• Copies of office inspections.
• Identification data on beneficial owners of all accounts. This must include the beneficial owners’ names and addresses.
• Records relating to stabilizing bids, syndicate covering transactions, and penalty bids required to be maintained by the syndicate manager.
• The application for employment and/or any questionnaire for employment for any associated person. T