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?
- AThe firm does not need to keep records of these communications if they are encrypted.
- BThe firm must only keep records if the communications result in a securities transaction.
- CThe firm must capture and retain all business-related digital communications for at least three years.✓ Correct answer
- DThe firm must keep records only of communications sent to more than 25 clients.
Explanation
Why C — The 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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- A registered representative wants to use a new social media platform to interact with clients. What is the FIRST step…
- A client posts a positive testimonial about a registered representative on the firm's LinkedIn page. Which statement is…
- A representative wants to tweet a market prediction suggesting a specific stock will outperform based on recent…
- A registered representative wants to post an infographic about investing basics on their firm's Facebook page. The…