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he...@sec.gov
FOR IMMEDIATE RELEASE 2001-123
FINAL RULE AMENDMENTS TO BOOKS AND RECORDS REQUIREMENTS
FOR BROKERS AND DEALERS UNDER THE
SECURITIES EXCHANGE ACT OF 1934
Washington, DC, October 25, 2001 The Securities and
Exchange Commission today adopted final rule amendments to the
broker-dealer books and records rules (Rule 17a-3 and Rule 17a-
4) under the Securities Exchange Act of 1934. The amendments
clarify and expand recordkeeping requirements including those
for purchase and sale documents, customer records, associated
person records, customer complaints, communications with the
public, and supervisory procedures. In addition, the
amendments require broker-dealers to maintain or promptly
produce certain records at each office to which those records
relate. These amendments are specifically designed to assist
securities regulators when conducting sales practice
examinations of broker-dealers, particularly examinations of
local offices.
The amended rules contain the following general
provisions, among others:
· A broker-dealer must create a record containing certain
minimum information as to each customer and furnish that
information to the customer on a periodic basis. A broker-
dealer does not have this requirement for an account for
which the firm is not required (under any federal or
SRO rules) to make a suitability determination.
· A broker-dealer must create and maintain certain records
for each office of the broker-dealer, and these records
must either be maintained at that office or delivered to
that office promptly upon request.
· A broker-dealer must include additional information on
each order ticket, including the identity of the associated
person, if any, responsible for the account and any other
person who entered or accepted the order on behalf of the
customer.
The final rules will become effective 18 months after the
date of publication in the Federal Register.
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