A state-registered investment adviser ceases business. What generally happens to books and records that are still within their required retention period?

AThey must be preserved for the remainder of the applicable retention period✓ Correct answer
BThey may be destroyed immediately upon termination
CEvery record must be kept for exactly three years after termination
DEvery record must be kept permanently

Explanation

Why A — They must be preserved for the remainder of the applicable retention period

Ceasing business does not erase an investment adviser's existing record-retention obligations. Required records must remain preserved for the remainder of the applicable period, and the Administrator may require arrangements identifying the custodian of those records. The precise period depends on the record category.

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