Series 63 practice questionhardbooks and records
A state-registered IA in State X keeps records at an overseas cloud service that does not allow the Administrator access. Under the USA, this is:
- AA violation, because records must be accessible to the Administrator upon demand✓ Correct answer
- BPermitted if the cloud service is secure
- CPermitted if clients consent in writing
- DNot regulated by the USA
Explanation
Why A — A violation, because records must be accessible to the Administrator upon demand
Records must be accessible for inspection at any time by the Administrator (USA Rule 204-2). Security or client consent does not override this requirement, and all books and records storage is regulated.
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