Things To Know About FINRA Retention Requirements



Understanding FINRA retention requirements is of great importance especially if you have a business in the finance sector. The Rule 4511 of FINRA includes the general archiving requirements that broker-dealers must comply. This rule is based on the general recordkeeping requirements of NASD Rule 3110 and NYSE 440, and it clarifies that companies are supposed to make and preserve books and records under the FINRA rules, the SEA act, as well as the applicable SEA rules.

This rule also clarifies that financial service firms are supposed to preserve for at least 6 years the FINRA books and records that do not have a specified retention under the FINRA rules or the applicable SEA rules. It also clarifies that firms are supposed to preserve the books and records that are supposed to be made under the FINRA rules in a format and media that complies with the Securities Exchange Act rule 17a-4.

Not only do the above-mentioned FINRA rules apply to written records like business letters and documents, but also to digital content channels such as text/SMS, social media, video, audio,  blogs and website. The SEA rules 17a-3 and 17a-4 detail the books and records that broker-dealers as well as member-firms are supposed to create and retain. Examples of records that should be created and archived include records of original entry,  trade ticket, copies of confirmations and notices, customer account profile information, just to mention a  few.

The FINRA retention requirements for books and records vary depending on the type.  For instance, trade tickets for brokerage orders need to be preserved for at least three years while the original copies of all business-related communications received, as well as copies of all communications sent by broker-dealer need to be retained for at least three years.

For more information on FINRA retention requirements, visit our website at https://www.telemessage.com/

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