Series 79 practice questionmediumBooks and Records Requirements
A broker-dealer is undergoing an audit and needs to provide original customer account forms. Which format is acceptable under SEC rules?
- AElectronic records stored in WORM format✓ Correct answer
- BScanned images stored on rewritable media
- CPaper copies only
- DHandwritten summaries prepared after account closure
Explanation
Why A — Electronic records stored in WORM format
WORM format electronic storage is permitted and satisfies SEC requirements. The trap is thinking only originals or paper are acceptable, but SEC allows compliant electronic records.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Section 4 questions
- Which of the following would most likely trigger enhanced customer due diligence under AML rules for an investment bank?
- Which of the following statements is TRUE regarding the retention of electronic communications by broker-dealers?
- An investment banking analyst learns about a pending acquisition while working on the deal and shares this information…
- Which of the following must a firm include in its written supervisory procedures (WSPs)?
- Under the misappropriation theory of insider trading, which of the following individuals could be held liable?
- A director of Company X learns of a major development and tips a family member, who trades and then tells a neighbor…
- A firm is updating its business continuity plan. Which of the following must the plan specifically address according to…
- Which of the following practices is specifically prohibited to ensure research analyst independence under FINRA rules?