Three-Year Records
Most other records must be retained for three years. They include:
• a memorandum of each brokerage order given or received for the purchase or sale of securities for customer and firm accounts. This memorandum must include the following:
» terms and conditions of the order
» account for which it was entered
» time the order was received
» time of entry
» price at which it executed
» identity of each associated person, if any, responsible for the account
» identity of any other person who entered or accepted the order on behalf of the customer
» time of execution or cancellation
• a memorandum of each purchase and sale for the firm’s account; this must show the same information as above
• copies of customer confirmations and copies of notices of all other debits and credits for customer accounts
• authorization records to draw funds from a customer’s accounts using a check or another negotiable instrument if the authorization is separate from the check; these must be kept for three years from the check’s expiration date
• copies of office inspections
• identification data on beneficial owners of all accounts, which must include the beneficial owners’ names and addresses
• records relating to stabilizing, syndicate covering transactions, and penalty