HAR §16-38-5.4. Books and records

(a) Every dealer, except a dealer that is registered under the Securities Exchange Act, shall make and keep the books and records listed in subsections (b) through (h). All dealers registered under the Securities Exchange Act shall keep and maintain books and records as required under the Securities Exchange Act. All records required to be kept by this section shall be maintained and preserved for a period of at least three years and made available for inspection by the commissioner upon reasonable notice. (b) Blotters (or other records or books of original entry) containing an itemized daily record of: (1) Purchases and sales of securities; (2) Receipts and deliveries of securities; (3) Receipts and disbursements of cash; (4) All other debits and credits; and (5) Each transaction, reflecting: (A) The account or name of the customer; §16-38-5.3 38-13 (B) Name and amount of securities; (C) Certificate number, if any; (D) Unit and aggregate purchase or sale price; (E) Trade date; and (F) Name or other designation of person from whom purchased or received, or to whom sold and delivered. (c) Ledgers, reflecting: (1) Assets and liabilities; (2) Income and expenses; (3) Capital accounts; (4) Securities in transfer; (5) Dividends and interest received; (6) Securities borrowed and loaned; (7) Monies borrowed and loaned, and collateral used or substituted therefor; (8) Securities failed to receive and failed to deliver; and (9) A record of all puts, calls, spreads and straddles and other options in which dealer has any direct or indirect interest, or which it has granted or guaranteed, containing at least: (A) Identification of the security; and (B) Number of units involved. (d) Ledger accounts, itemizing separately as to each cash or margin account of every customer and of the dealer, including employees and partners thereof: (1) Name and address of the beneficial owner of the account; (2) In the case of a margin account, the signature of the owner, or person authorized to transact business for the account; (3) Purchases and sales; (4) Receipts and deliveries of securities; and (5) All other debits and credits to the account. (e) Securities records, reflecting for each security (including securities in safekeeping) carried by the dealer for its account, or for the accounts of its customers, employees, or partners: (1) Clearance dates of all long and short positions; (2) Location of all securities long and offsetting position to all securities short; and (3) Name or designation of the account in which each position is carried. (f) Memorandum, of the following: (1) Each brokerage order for the purchase or sale of a security showing: §16-38-5.4 38-14 (A) Any instruction given or received, whether executed or unexecuted; (B) Terms and conditions or instructions, and any modification or cancellation thereof; (C) Account for which entered; (D) Date and time of entry, and time of execution or cancellation, to the extent feasible; (E) Price at which executed; and (F) Orders entered pursuant to the exercise of discretionary authority so designated; (2) Each purchase and sale for the account of the dealer, including employees and partners thereof, showing: (A) Name of purchaser or seller; (B) Price; and (C) Date and time of execution. (g) Confirmations of all purchases and sales of securities and notices of all other debits and credits for securities, cash, and other items for the account of customers, partners, and employees shall be given or sent to persons at or before completion of each transaction, copies to be retained by the dealer disclosing, at least: (1) The account for which the transaction is entered; (2) Instructions, terms, and conditions, whether executed or unexecuted; (3) Date of execution of transaction (the time of trade shall be furnished upon request.); (4) Whether the dealer is acting as agent or as dealer for its own account; and (5) If the dealer is acting as agent for the customer, the following information, or a statement that the same shall be furnished upon request: (A) The name of the person from whom the security was purchased, or to whom it was sold, and date and time the transaction occurred; and (B) The source and amount of commission or remuneration received or to be received in connection with the transaction. (h) Complaint forms, correspondence, memoranda, and any other document concerning complaints filed with the dealer; and any complaint forms, correspondence, memorandum, or other document that was filed by a client with any governmental entity or self-regulatory organization that was provided to the dealer by the governmental entity or self-regulatory organization. [Eff 6/4/70; am 1/1/71; am and ren §16-38-5.4 38-15 §16-38-5, 7/30/81; am, ren §16-38-5.4 and comp 10/12/85; am and comp 4/14/03] (Auth: HRS §485-2) (Imp: HRS §485-16)