Books and Records Retention Requirements
Chapters in this video
- 0:00 Make it versus keep it: two distinct rules
- 1:02 MSRB municipal-records parallel to SEC rules
- 2:46 The 6-3-2 retention framework unpacked
- 3:55 Corporate records for life of the enterprise
- 4:34 Account closing starts the 6-year clock
- 5:32 WORM format and audit-trail alternative
- 6:51 Rapid-fire exam recap
What this video covers
- Why the broker-dealer books-and-records rule governs creation of records while the broker-dealer recordkeeping rule governs retention length, and how exam questions test this distinction
- How the MSRB municipal-records creation rule and MSRB municipal-records preservation rule run parallel to the SEC broker-dealer rules for municipal securities transactions
- The 6-3-2 framework: 6 years for blotters and customer account records, 3 years for order tickets and communications, and easy accessibility for the first 2 years of either tier
- Why customer account records must be retained 6 years after account closing rather than 6 years from account opening, and how the exam frames this trap
- What corporate records (articles of incorporation, Forms BD and BDW) must be preserved for the life of the enterprise with no year cap
- How the Bank Secrecy Act (BSA) cross-reference brings FinCEN into broker-dealer compliance, and why CTRs and SARs carry a 5-year retention period
- Why write once, read many (WORM) format and the audit-trail alternative are both acceptable for electronic storage, and what non-rewritable or tamper-evident means in practice
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