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, w