NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A broker-dealer's compliance officer is reviewing the firm's books and records. Under the Uniform Securities Act, for how long must the broker-dealer typically maintain most required records?
- AThree years.
- BSix years.
- CSeven years.
- DFive years.
Show answer & explanationAnswer & explanation
Correct answer: A. Three years.
While federal (SEC) rules often require six years, the Uniform Securities Act generally requires broker-dealers to maintain records for a period of three years, with the first two years in an easily accessible location. If the state Administrator specifies a longer period, that would apply.
Why the other options are wrong
- B. Six years is the SEC standard, but the question asks about the Uniform Securities Act.
- C. Seven years is generally not a standard record retention period for BDs.
- D. Five years is not the standard under the Uniform Securities Act.
BD Record Retention (USA)
Under the Uniform Securities Act, broker-dealers are typically required to maintain most records for three years, with the first two years in an easily accessible location.
- Standard is three years.
- First two years must be readily accessible.
- State Administrator can specify a different period.
Memory trick: Three years you keep the books, with two years close by for a quick look.