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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-B. SECURITIES |
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Chapter 26-B1. BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES |
Section 26-B123. PRESERVATION OF RECORDS
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123.1Each broker-dealer subject to § 120.1 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 or maintained pursuant to §§ 120.2, 120.3, 120.4, 120.6, 122.1, 122.2 and 122.5.
123.2Each broker-dealer referred to in § 120.1 shall preserve for a period of not less than three (3) years, the first two (2) years in an easily accessible place the following records:
(a)All records required to be made or maintained pursuant to §§ 120.5, 120.7 through 120.15, 122.3, and 122.4;
(b)All check books, bank statements, cancelled checks and cash reconciliations;
(c)All bills receivable or payable (or copies) paid or unpaid, relating to the business of the broker-dealer;
(d)All trial balances, computations of minimum net capital and ratio or aggregate indebtedness to net capital, financial statements, branch office reconciliations and internal audit working papers, relating to the business of the broker-dealer as referred to in §§ 120.16 and 120.17;
(e)Originals of all communications received and copies of all communications sent by the broker-dealer (including inter-office memoranda and communications) to his or her business;
(f)All guarantees of accounts and all powers of attorney and other evidence of the granting of any discretionary authority given in respect of any account, and copies of resolutions empowering an agent to act on behalf of a corporation; and
(g)All written agreements (or copies) entered into by the broker-dealer relating to his or her business, including agreements with respect to any account.
123.3Each broker-dealer referred to in § 120.1 shall preserve for a period of not less than six (6) years after the closing of any customer's account any account card or records which relate to the terms and conditions with respect to the opening and maintenance of the account.
123.4Each broker-dealer referred to in § 120.1 shall preserve during the life of the enterprise and of any successor enterprise all partnership articles, or in the case of a corporation, all articles of incorporation or charter amendments, minute books, stock certificate books and stock transfer ledgers.
123.5Each broker-dealer referred to in § 120.1 shall preserve and maintain in an easily accessible place all records required under § 121 until at least three (3) years after the "associated person" has terminated his or her employment and any other connection with the broker-dealer.
123.6No rules of this chapter shall be considered to require a member of a national securities exchange to make or keep records of transactions cleared for a member by another member as are customarily made and kept by the clearing member.
123.7No rules of this chapter shall be considered to require a broker-dealer licensed, pursuant to the Act, to make or kept records as required by § 120, reflecting the sales of United States Tax-Savings Notes, United States Defense Savings Stamps, or United States defense Savings Bonds, Series E, F, and G.
123.8The records specified in §§ 121, 122, 123 of these regulations shall not be required with respect to any cash transaction of one hundred dollars ($ 100) or less involving only subscription rights or warrants which by their terms expire within ninety (90) days after its issuance.
123.9After a record or document has been preserved for two (2) years, a photograph on film may be substituted for the balance of the required time.
123.10If a broker-dealer licensed or required to be licensed under the Act, ceases to transact business in securities in the District, the broker-dealer shall for the remainder of the periods of time specified in this section, continue to preserve the records which it preserved pursuant to §§ 120 though 123.