NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A state-registered broker-dealer's compliance officer is reviewing recordkeeping obligations. Under NASAA model rules incorporating the Uniform Securities Act, for how long must most required books and records generally be preserved, and how must the most recent portion be maintained?
- AThree years total, with all records stored off-site after one year
- BFive years, with the first two years in an easily accessible location
- CIndefinitely, until the Administrator authorizes destruction
- DSeven years, with no accessibility requirement
Show answer & explanationAnswer & explanation
Correct answer: B. Five years, with the first two years in an easily accessible location
NASAA rules generally require broker-dealers to preserve most records for five years, with the records from the first two years kept in an easily accessible place, mirroring the SEC's recordkeeping framework.
Why the other options are wrong
- A. Three years understates the standard retention period.
- C. Indefinite retention is not required; a defined retention period applies.
- D. Seven years overstates the requirement and omits the accessibility rule.
Broker-Dealer Recordkeeping Period
Broker-dealers must generally retain required books and records for five years, keeping the first two years' records in an easily accessible location.
- Five-year retention is the general standard
- First two years must be readily accessible on-site or similar
- Mirrors SEC recordkeeping rules for consistency across regulators
Memory trick: Five years total, two years handy.