Series 63 practice questionmediumRecord Retention
Under the Uniform Securities Act, which statement BEST describes a broker-dealer's record-retention obligation?
- AEvery required record must be kept for exactly three years
- BEvery required record must be kept for exactly five years
- CThe broker-dealer must preserve records required under applicable federal law, subject to lawful state requirements✓ Correct answer
- DRecords may be destroyed as soon as an account is closed
Explanation
Why C — The broker-dealer must preserve records required under applicable federal law, subject to lawful state requirements
The Uniform Securities Act requires broker-dealers to make and preserve records consistent with applicable federal requirements. Federal retention periods vary by record category, so a single three-year or five-year period does not accurately describe every required broker-dealer record.
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