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Series 7 practice questionmediumAccount Documentation — Record Retention

Under SEC Rule 17a-4, how long must a broker-dealer retain new account documentation after an account is closed?

  1. A1 year
  2. B3 years
  3. C6 years after the account is closed✓ Correct answer
  4. DIndefinitely
Explanation

Why C — 6 years after the account is closed

SEC Rule 17a-4 requires broker-dealers to retain account records, including new account forms and related documentation, for at least six years after the account is closed. This requirement ensures that records are available for regulatory examination, customer dispute resolution, and potential enforcement actions.

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