Rule G-9. (a) Records
to be Preserved for Six Years. Every broker, dealer and municipal
securities dealer shall preserve the following records for a period
of not less than six years:
(i) the records of original entry described in rule G-8(a)(i);
(ii) the account records described in rule G-8(a)(ii);
(iii) the securities records described in rule G-8(a)(iii);
(iv) the records of syndicate transactions described in rule
G-8(a)(viii), provided, however, that (1) such records need
not be preserved for a syndicate or similar account which is
not successful in purchasing an issue of municipal securities,
and (2) information concerning orders received by a syndicate
or similar account to which securities were not allocated by
such syndicate or account need not be preserved after the date
of final settlement of the syndicate or account;
(v) the customer complaint records described in rule G-8(a)(xii);
(vi) if such broker, dealer or municipal securities dealer
is subject to rule 15c3-1 under the Act, the general ledgers
described in paragraph (a)(2) of rule 17a-3 under the Act;
(vii) the record, described in rule G-27(b)(ii), of each person
designated as responsible for supervision of the municipal securities
activities of the broker, dealer, or municipal securities dealer
and the designated principal’s supervisory responsibilities,
provided that such record shall be preserved for the period
of designation of each person designated and for at least six
years following any change in such designation;
(viii) the records to be maintained pursuant to rule G-8(a)(xvi);
provided, however, that copies of Forms G-37x shall be preserved
for the period during which such Forms G-37x are effective and
for at least six years following the end of such effectiveness;
(ix) the records regarding information on gifts and gratuities
and employment agreements required to be maintained pursuant
to rule G-8(a)(xvii); and
(x) the records required to be maintained pursuant to rule
G-8(a)(xviii).
(b)
Records to be Preserved
for Three Years. Every broker, dealer and municipal securities
dealer shall preserve the following records for a period of not
less that three years:
(i) the subsidiary records described in rule G-8(a)(iv);
(ii) the records of put options and repurchase agreements described
in rule G-8(a)(v);
(iii) the records relating to agency transactions described
in rule G-8(a)(vi);
(iv) the records of transactions as principal described in
rule G-8(a)(vii);
(v) the copies of confirmations and other notices described
in rule G-8(a)(ix);
(vi) the customer account information described in rule G-8(a)(xi),
provided that records showing the terms and conditions relating
to the opening and maintenance of an account shall be preserved
for a period of at least six years following the closing of
such account;
(vii) if such broker, dealer or municipal securities dealer
is subject to rule 15c3-1 under the Act, the records described
in subparagraphs (a)(4)(iv) and (vi) and (a)(11) of rule 17a-3
and subparagraphs (b)(5) and (b)(8) of rule 17a-4 under the
Act;
(viii) the following records, to the extent made or received
by such broker, dealer or municipal securities dealer in connection
with its business as such broker, dealer or municipal securities
dealer and not otherwise described in this rule:
(A) check books, bank statements, canceled checks, cash reconciliations
and wire transfers;
(B) bills receivable or payable;
(C) all written and electronic communications received and
sent, including inter-office memoranda, relating to the conduct
of the activities of such municipal securities broker or municipal
securities dealer with respect to municipal securities;
(D) all written agreements entered into by such broker, dealer
or municipal securities dealer, including agreements with
respect to any account; and
(E) all powers of attorney and other evidence of the granting
of any authority to act on behalf of any account, and copies
of resolutions empowering an agent to act on behalf of a corporation.
(ix) all records relating to fingerprinting which are required
pursuant to paragraph (e) of rule 17f-2 under the Act;
(x) all records of deliveries
of rule G-32 disclosures and, if applicable, a record
evidencing compliance with section (a)(i)(C) of rule G-32 required to be retained as
described in
rule G-8(a)(xiii);
(xi) the records to be maintained pursuant to rule G-8(a)(xv);
(xii) the authorization required by rule G-8(a)(xix)(B); however,
this provision shall not require maintenance of copies of negotiable
instruments signed by customers; and
(xiii) each advertisement from the date of each use.
(xiv) the records required to be maintained pursuant to rule
G-8(a)(xx);
(xv) the records to be maintained pursuant to rule G-8(a)(xxi);
(xvi) the records to be maintained pursuant to rule G-8(a)(xxii); and
(xvii) the records to be maintained pursuant to Rule G-8(a)(xxiii).
(c) Records to be Preserved for Life of Enterprise.
Every broker, dealer and municipal securities dealer other than
a bank dealer shall preserve during the life of such broker, dealer
or municipal securities dealer and of any successor broker, dealer
or municipal securities dealer all partnership articles or, in
the case of a corporation, all articles of incorporation or charter,
minute books and stock certificate books.
(d) Accessibility and Availability of Records. All books
and records required to be preserved pursuant to this rule shall
be available for ready inspection by each regulatory authority
having jurisdiction under the Act to inspect such records, shall
be maintained and preserved in an easily accessible place for
a period of at least two years and thereafter shall be maintained
and preserved in such manner as to be accessible to each such
regulatory authority within a reasonable period of time, taking
into consideration the nature of the record and the amount of
time expired since the record was made.
(e) Method of Record Retention. Whenever a record is
required to be preserved by this rule, such record may be retained
either as an original or as a copy or other reproduction thereof,
or on microfilm, electronic or magnetic tape, or by the other
similar medium of record retention, provided that such broker,
dealer or municipal securities dealer shall have available adequate
facilities for ready retrieval and inspection of any such record
and for production of easily readable facsimile copies thereof
and, in the case of records retained on microfilm, electronic
or magnetic tape, or other similar medium of record retention,
duplicates of such records shall be stored separately from each
other for the periods of time required by this rule.
(f) Effect of Lapse of Registration. The requirements
of this rule shall continue to apply, for the periods of time
specified, to any broker, dealer or municipal securities dealer
which ceases to be registered with the Commission, except in the
event a successor registrant shall undertake to maintain and preserve
the books and records described herein for the required periods
of time.
(g) Compliance with Rules 17a-3 and 17a-4. Brokers,
dealers and municipal securities dealers other than bank dealers
which are in compliance with rules 17a-3 and 17a-4 under the Act
will be deemed to be in compliance with the requirements of this
rule, provided that the records enumerated in section (f) of rule
G-8 of the Board shall in any event be preserved for the applicable
time periods specified in this rule.
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