Recordkeeping Requirements
Chapters in this video
- 0:00 The federal-versus-state turf war over broker-dealer records
- 1:21 Federal rules govern: broker-dealer Beatrice's baseline obligation
- 2:24 State ceiling: why Stan cannot exceed federal standards
- 3:46 Exam trap: the phantom NASAA model rule on books and records
- 4:53 What Stan can do: examine records, not write the rules
- 5:48 Rapid-fire exam recap
What this video covers
- Why the Securities and Exchange Commission (SEC) and federal law set the absolute baseline for broker-dealer recordkeeping, not the states
- How a state's recordkeeping standards must be consistent with federal standards, and the legal ceiling that prevents states from exceeding them
- Why the North American Securities Administrators Association (NASAA) has not issued a model rule on broker-dealer books and records, and how test writers bait you with this phantom rule
- What a state administrator can legally do: examine and audit broker-dealer records to ensure compliance with federal standards
- What a state administrator cannot legally do: invent, mandate, or enforce any recordkeeping requirements that go beyond the federal rule
- How to spot decoy answer choices that suggest states have independent rulemaking authority over broker-dealer recordkeeping
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 63 course adds adaptive practice questions and spaced-repetition flashcards.