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Series 7: Seeks Business for the Broker-Dealer
Series 7 practice questionmediumSocial Media — Recordkeeping Requirements

A representative regularly communicates with clients using a messaging app approved by the firm. What is required for the firm to remain compliant with recordkeeping rules regarding these communications?

  1. AThe firm does not need to keep records of these communications if they are encrypted.
  2. BThe firm must only keep records if the communications result in a securities transaction.
  3. CThe firm must capture and retain all business-related digital communications for at least three years.✓ Correct answer
  4. DThe firm must keep records only of communications sent to more than 25 clients.
Explanation

Why CThe firm must capture and retain all business-related digital communications for at least three years.

FINRA requires firms to retain all business-related electronic communications, regardless of the number of recipients or encryption status, for at least 3 years.

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