Broker-Dealer Recordkeeping Requirements

Summary

This practice note discusses the recordkeeping requirements of registered broker-dealers (BDs). BDs are subject to a variety of recordkeeping requirements that are promulgated and enforced by the United States Securities and Exchange Commission (Commission or SEC), the various states, and self-regulatory agencies such as the Financial Industry Regulatory Authority (FINRA). These requirements have long been recognized as vital for customer protection, fraud prevention, and general regulatory activities. Thus, in a constantly evolving regulatory environment, failure to abide by recordkeeping requirements is not only a bad business practice but will subject BDs to severe sanctions.