Under SEC Rules 17a-3 and 17a-4, broker-dealers are required to create and maintain certain books and records. Which of the following must be preserved for at least three years?
- AOnly records related to trades that resulted in customer complaints
- BGeneral ledger records, customer account statements, and communications relating to the firm's business✓ Correct answer
- COnly records that the firm's CEO personally designates as important
- DRecords related to employee vacation schedules and office supply orders
Why B — General ledger records, customer account statements, and communications relating to the firm's business
SEC Rules 17a-3 and 17a-4 establish comprehensive books and records requirements for broker-dealers, including the obligation to maintain general ledgers, customer account records, trade blotters, communications related to business activities, and numerous other categories of records. Most records must be preserved for at least three years, with certain records such as corporate formation documents required to be kept for the life of the firm. These requirements ensure a proper audit trail for regulatory examinations and investigations.
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