Series 63 practice questionmediumbooks and records
Which of the following describes an investment adviser's recordkeeping obligation under the USA if required records are lost due to a fire?
- AThe adviser must notify the Administrator and attempt to reconstruct the records✓ Correct answer
- BNo action is required if the loss was accidental
- CThe adviser must file a new Form ADV immediately
- DThe adviser must only reconstruct client account records, not all records
Explanation
Why A — The adviser must notify the Administrator and attempt to reconstruct the records
Material loss of records, even accidental, must be reported to the Administrator and steps taken to recover or reconstruct them (USA Rule 204-2). No-action or partial-record efforts are insufficient.
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