What is SEC Rule 17a 3?
Rule 17a-3 requires brokers and dealers to create and preserve comprehensive records of each securities trade, including copies of blotters, account statements, trade confirmations, cancelled checks and more.
What is a 17a?
SEC Rule 17a-4 is a regulation issued by the U.S. Securities and Exchange Commission pursuant to its regulatory authority under the US Securities Exchange Act of 1934 (Known simply as the “Exchange Act”) which outlines requirements for data retention, indexing, and accessibility for companies which deal in the trade or …
How long does the broker/dealer have to provide the customer with an amended account record for confirmation?
within 30 days
Answer: Rule 17a-3(a)(17) requires that broker/dealers periodically furnish each customer or owner with a copy of the account record (or an alternate document containing all of the required information), generally within 30 days of opening the account and at least every 36 months thereafter and when certain information …
How long must a broker-dealer retain records?
Records to be Preserved by Brokers and Dealers Record Retention: Three years, the first two years in an easily accessible place.
What is the role of FINRA?
FINRA is authorized by Congress to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly. We oversee more than 624,000 brokers across the country—and analyze billions of daily market events.
What is SEC Rule 17a 5?
SEC Form X-17A-5 is a financial reporting form that all broker-dealers who are registered with the U.S. Securities and Exchange Commission (SEC) must complete. This form consists of three parts and contains an annual audit that must be performed by a certified public accountant (CPA).
What is SEC Rule 17a 4 F?
Rule 17a-4 requires broker-dealers to retain records for specified lengths of time. The ability to overwrite or erase records stored on these systems makes them non-compliant with Rule 17a-4(f). Any system used by a broker-dealer must comply with every requirement in paragraph (f) of the rule.
How many years must customer account records be retained by a member?
Documents that must be retained for three years include: Customer communications, bank statements, canceled checks, and FOCUS reports.
Which of the following records must be kept by a broker dealer firm for 3 years?
The length of time your broker must keep records depends on the type of record. For example, brokers must retain blotters (records containing details of all purchases and sales of securities) for at least six years. But they must keep copies of trade confirmations for only three years.
What is finra Focus report?
A FINRA Financial and Operational Combined Uniform Single (FOCUS) report includes a balance sheet, income statement, net capital calculation, and equity reconciliation. The intent is to demonstrate to regulators the financial position of the firm and its ability to maintain sufficient net capital.
Is form BD publicly available?
The Form also is used by applicants to register as broker- dealers with certain self-regulatory organizations and all of the states. The Commission and the Financial Industry Regulatory Authority, Inc. maintain the files of the information on this Form and will make the information publicly available.
What is the purpose of rule 17a-3 ( a ) ( 17 )?
The primary purpose of Rule 17a-3 (a) (17) is to provide regulators, particularly State Securities Regulators, with access to books and records which enable them to review for compliance with suitability rules. 20 Rule 17a-3 (a) (17) also requires broker-dealers to furnish that information to each customer on a periodic basis.
What does SRO rule 17a ( a ) ( 17 ) apply to?
As noted in the Adopting Release, application of new paragraph 17a-3 (a) (17) does not limit any other Federal law or regulation or SRO rule that requires that a broker-dealer collect information regarding its customers. 5 New Rule 17a-3 (a) (17) applies to an “account with a natural person as a customer or owner.”
What are the general requirements of FINRA Rule 4511?
FINRA Rule 4511 (General Requirements) requires firms to: (1) make and preserve books and records as required under the rules of FINRA, the SEA and the applicable SEA rules; and (2) preserve the books and records required to be made pursuant to the FINRA rules in a format and media that complies with SEA Rule 17a-4.
When is an order entered pursuant to discretionary authority?
An order entered pursuant to the exercise of discretionary authority by the member, broker or dealer, or associated person thereof, must be so designated. The term instruction must include instructions between partners and employees of a member, broker or dealer.