Books and Records
The Securities and Exchange Commission (SEC) in 2001 adopted amendments to its books and records rules—Rules 17a-3 and 17a-4—to clarify and expand firm recordkeeping requirements that cover purchase and sale documents, customer records, associated person records, customer complaint records and certain other matters.
The rule amendments, which became effective in 2003, also require firms to maintain or promptly produce certain records at each office to which those records relate.
Here are some of the records the SEC amendments require firms to make, among others.
- Order tickets
- Customer accounts
- Customer complaints of associated persons
- Associated person identification numbers
- Associated person compensation
- A list of principals of the firm
- Office records
In addition, the SEC rules require firms to furnish each customer who opens an account with a copy of the account record within 30 days of the opening of the account, and at least every 36 months after that. The account record includes the customer’s personal information, annual income and net worth, as well as the customer’s investment objectives.
Records Firms Must Preserve
The SEC also requires firms to maintain and preserve the following records.
- Communications with the public, including all communications received and sent relating to the firm’s business.
- Organizational documents, such as all partnership articles or, if a corporation, all articles of incorporation or charter, including minute books and stock certificate books, among others.
- Special reports, such as each report that a securities regulatory authority has requested or required a firm to make and furnish pursuant to an order or settlement.
- Compliance, supervisory and procedures manuals, including any updates, modifications and revisions to each manual.
- Exception reports produced to review unusual activity in customer accounts.
|Comparison of the AML Customer Identification Rule and the SEC’s Books & Records Customer Account Records Rule|
Two important regulatory developments relate to obtaining customer information: the Anti-Money Laundering Customer Identification Rule and the SEC's Books and Records Customer Account Records Rule. These rules require that important customer identification be obtained. However, these rules have critical differences including their purposes, their definitions, and their timing requirements. We created this document to assist our member firms. It contains brief summaries of the rules' relevant provisions.
|SEC Interpretive Release: Books and Records Requirements for Brokers and Dealers Under the Securities Exchange Act of 1934||Guidance||05-29-2003|
|SEC Release 34-44992A: Correction to a Final Rule: Books and Records Requirements for Brokers and Dealers Under the Securities Exchange Act of 1934||Link||05-02-2003|
|Broker/Dealer Books and Records Recordkeeping Requirements Checklist|
Broker/Dealer Books and Records Recordkeeping Requirements Checklist New and Amended Recordkeeping Requirements Checklist Page 1 of 9 Broker-Dealer Books and Records: New and Amended Recordkeeping Requirements Checklist May 2003 On October 26, 2001, the SEC adopted amendments to Rules 17a-3 and 17a
|NASD Workshop For Members: Books & Records Amendments Telephone Transcript |
April 10, 2003 2:00 P.M. Kyra: Hello. Good afternoon and welcome to the Regulatory and Compliance Workshop. My name is Kyra Armstrong. I'm an attorney in Member Regulation, as are Emily Gordy and Vicky Berberi-Doumar. From NASD, we also have Patricia Albrecht from the Office of General Counsel
|The Next Phase: Implementing the Patriot Act by Lori Richards, Director, SEC Office of Compliance Inspections and Examinations|
Implementing the Patriot Act by Lori Richards, Director, SEC Office of Compliance Inspections and Examinations
|Speech / Testimony||03-27-2003|
|Remarks by Mary Ann Gadziala at Books and Records Compliance Countdown|
Associate Director, Securities and Exchange Commission, at Books and Records Compliance Countdown
|Speech / Testimony||03-24-2003|
|Regulatory & Compliance Alert- Summer 2002|
Regulatory & Compliance Alert- Summer 2002
|Notice to Members 01-80|
Amendments to Broker/Dealer Books and Records Rules Under the Securities Exchange Act of 1934
|SEC Release 34-44992: Books and Records Requirements for Broker and Dealers Under the Securities Exchange Act of 1934, 66 Fed. Reg. 55,818|
SEC Release 34-44992: Books and Records Requirements for Broker and Dealers Under the Securities Exchange Act of 1934, 66 Fed. Reg. 55,818 55818 Federal Register / Vol. 66, No. 213 / Friday, November 2, 2001 / Rules and Regulations 1 17 CFR 240.17a–3. 2 17 CFR 240.17a–4. 3 For purposes of this
|SEC Amendments to Rules 17a-3 and 17a-4 of the Securities Exchange Act of 1934||Link||10-25-2001|
|NASAA statement on SEC approval of new books and records rules|
This document includes a link to comments delivered on behalf of NASAA by Don Saxon, director of the Florida Department of Banking and Finance’s Securities Division, at the SEC Open Meeting on October 25, 2001.
|SEC Books and Records Amendments- FAQs|
SEC Books and Records Amendments- FAQs 1 FREQUENTLY ASKED QUESTIONS ABOUT THE AMENDMENTS TO BROKER/DEALER BOOKS AND RECORDS RULES UNDER THE SECURITIES EXCHANGE ACT OF 1934 Executive Summary On October 25, 2001, the Securities and Exchange Commission (“SEC” or “Commission”) adopted amendments to