Series 79 practice questionmediumBooks and Records Requirements
Which of the following statements is TRUE regarding the retention of electronic communications by broker-dealers?
- AFirms must retain emails related to business for at least three years✓ Correct answer
- BPersonal messages on company devices are exempt from retention
- CInstant messages never need to be stored
- DRetention is not required if correspondence is encrypted
Explanation
Why A — Firms must retain emails related to business for at least three years
Business-related communications, including email and instant messages, generally must be preserved for at least three years under Rule 17a-4(b)(4), with the first two years in an easily accessible place.
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