Series 63 practice questionhardbooks and records
A state-registered IA is merging with another IA. Which recordkeeping action is required under the USA?
- APreserve all required records for at least 3 years following the merger date✓ Correct answer
- BTransfer all records to the Administrator immediately
- CDestroy all pre-merger records if the merged firm has its own
- DNotify all clients of the merger within 10 days
Explanation
Why A — Preserve all required records for at least 3 years following the merger date
Upon discontinuance or change of ownership (such as a merger), records must be preserved for 3 years (Rule 204-2). Immediate transfer, destruction, or mandatory client notification within 10 days is not required by the USA.
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