Books and Records a Firm Must Make

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Chapters in this video

  1. 0:00 Creation versus preservation: the exam trap door
  2. 1:05 Blotters as records of original entry
  3. 2:35 General ledgers, customer ledgers, and the partners gotcha
  4. 3:22 Order memoranda: executed, cancelled, or modified
  5. 4:25 FINRA's six-year default and format borrow rule
  6. 5:38 Rapid-fire exam recap

What this video covers

  • Why a question asking "how long must this be kept" is always testing preservation, even when it names a blotter or order ticket defined on the creation side
  • What a blotter must contain as the record of original entry, and why the trade date is the non-negotiable detail
  • How general ledgers differ from customer ledger accounts, and why ledgers are not a customers-only duty
  • Why order memoranda are required whether a brokerage order executes or not, and what must be designated for discretionary orders
  • The monthly requirement for trial balances and net capital computations
  • How FINRA's recordkeeping framework sits on top of the Securities and Exchange Commission baseline, adding member-specific categories and a six-year default retention period
  • Why FINRA borrows the SEC's format and media standard instead of creating its own

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 82 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.

Read the Free Lesson → free · no signup wall