Records to be Preserved by Broker-Dealers

PURPOSE: This rule prescribes periods of time books and records of broker-dealers must be preserved. (1) Every broker-dealer shall preserve for a period of not less than six (6) years, the first two (2) years in an easily accessible place, all records required to be made pursuant to these rules. (2) Every broker-dealer shall preserve for a period of not less than three (3) years and, for the first two (2) years, in an easily accessible place, the following: (A) All check books, bank statements, cancelled checks, voided checks and cash reconciliations; (B) All bills, receivable or payable (or copies) paid or unpaid relating to the business of the broker-dealer; (C) Originals of all communications received and copies of all communications sent by the broker-dealer (including interoffice memoranda and communications) relating to his/her broker-dealer business; (D) All net capital computations, trial balances, financial statements, branch office reconciliations and internal audit working papers, relating to the business of the brokerdealer; (E) All guarantees of accounts and all powers of attorney and other evidence of the granting of any discretionary authority given in respect to any account and copies of resolutions empowering an agent to act on behalf of a corporation; and (F) All written agreements (or copies) entered into by that broker-dealer relating to his/her business, including agreements with respect to any account. (3) For a period of not less than six (6) years after the closing of any customer’s account, every such broker-dealer shall preserve any account cards or records which relate to the terms and conditions with respect to the opening and maintenance of such account. (4) During the life of the enterprise, and of any successor enterprise, every broker-dealer shall preserve all partnership articles or, in the case of a corporation, all articles of incorporation or charter, minute books and stock certificate books. (5) After a record or other document has been preserved for two (2) years, its photograph on film may be substituted for the balance of the required time. (6) Compliance with the requirements of the Commodity Futures Trading Commission or Securities and Exchange Commission with respect to preservation of records shall be deemed to be compliance with this rule. AUTHORITY: section 409.858(6), RSMo 1986.* This rule was previously filed as 15 CSR 30-60.110. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987. *Original authority: 409.858, RSMo 1985.