Books and Records Creation

What this video covers

• Why the FINRA general-recordkeeping rule is only a hook with a 6-year default retention floor, not the substantive list of required records
• How the Securities Exchange Act of 1934 (SEA) and SEA rules provide the actual records-to-be-made requirements that hang on the FINRA hook
• The critical exam distinction between making a record (bringing it into existence and keeping it current) versus preserving a record (duration and format in storage)
• Why there is no universal next-business-day deadline across all records, and how monthly items like trial balances and net-capital computations run on their own cycles
• What blotters are as records of original entry, and why every purchase, sale, receipt, delivery, and cash movement hits the blotter first
• Why customer account records must contain the full know-your-customer file, including income, net worth, and investment objectives, not just name and address
• How underwriting deal files are ordinary broker-dealer records split between made requirements (agreements, allocations, order tickets) and preserved requirements (syndicate correspondence as communications), and why allocation emails are never classified as order tickets