FINRA Series 7Processes and Confirms TransactionsHard
A firm receives a written complaint from a customer alleging unauthorized trading by a registered representative. Under FINRA Rule 4513, how long must the firm retain the records related to this written complaint?
- ATwo years from receipt of the complaint
- BFour years from receipt of the complaint
- CIndefinitely, as complaints are never subject to a retention limit
- DOne year from receipt of the complaint
Show answer & explanationAnswer & explanation
Correct answer: B. Four years from receipt of the complaint
FINRA Rule 4513 requires member firms to maintain records of written customer complaints, and the associated files (including the complaint, investigation notes, and resolution) must be preserved for a minimum of four years, consistent with SEC Rule 17a-4 record retention standards.
Why the other options are wrong
- A. Two years is insufficient under Rule 4513.
- C. There is a defined retention period; it is not indefinite.
- D. One year is too short and does not meet Rule 4513 standards.
FINRA Rule 4513 – Complaint Record Retention
Member firms must maintain records of written customer complaints for a minimum of four years from the date the complaint is received.
- Applies to all written complaints
- Retention period is four years
- Complements FINRA Rule 4530 reporting obligations
Memory trick: Four years to keep the complaint file, just like most FINRA books and records.