PURPOSE: This rule prescribes periods of time books
and records of broker-dealers must be preserved.
(1) Every broker-dealer shall preserve for a
period of not less than six (6) years, the first two (2) years in an easily
accessible place, all records required to be made pursuant to these
shall preserve for a period of not less than three (3) years and, for the first
two (2) years, in an easily accessible place, the following:
(A) All check books, bank statements,
cancelled checks, voided checks and cash reconciliations;
(B) All bills, receivable or payable (or
copies) paid or unpaid relating to the business of the broker-dealer;
(C) Originals of all communications received
and copies of all communications sent by the broker-dealer (including
interoffice memoranda and communications) relating to his/her broker-dealer
(D) All net capital
computations, trial balances, financial statements, branch office
reconciliations and internal audit working papers, relating to the business of
guarantees of accounts and all powers of attorney and other evidence of the
granting of any discretionary authority given in respect to any account and
copies of resolutions empowering an agent to act on behalf of a corporation;
(F) All written agreements (or
copies) entered into by that broker-dealer relating to his/her business,
including agreements with respect to any account.
(3) For a period of not less than six (6)
years after the closing of any customer's account, every such broker-dealer
shall preserve any account cards or records which relate to the terms and
conditions with respect to the opening and maintenance of such
(4) During the life of the
enterprise, and of any successor enterprise, every broker-dealer shall preserve
all partnership articles or, in the case of a corporation, all articles of
incorporation or charter, minute books and stock certificate books.
(5) After a record or other document has been
preserved for two (2) years, its photograph on film may be substituted for the
balance of the required time.
Compliance with the requirements of the Commodity Futures Trading Commission or
Securities and Exchange Commission with respect to preservation of records
shall be deemed to be compliance with this rule.