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 emails, must be retained for three years. The trap is believing personal use or encryption impacts the retention requirement.
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