On 7/17/06, Jones, Virginia <[log in to unmask]> wrote:
>
> Thanks to all who replied to my question about our customer data.


My take on the example you gave regarding "machine logs" of transactional
data is that during a pre-hearing conference these types of information
would be identified and a SME (not Hugh's variety, but the Subject Matter
Expert type) would be asked to define/describe the method by which this data
is collected, managed and interpreted and then a determination would be made
as to how admissible they are.  Obviously, SOMEONE knows how to interpret
them, and there is a procedure they go through that should be able to be
explained to someone else that would allow them to make similar
interpretations of the machine logs.

I would like to pose my first question once again to the list for
> discussion (if discussion there is) - If a law or regulation requires
> certain kinds of information or communication to be retained, then does
> that equate in some way to requiring the information or communication to
> be created in the first place?  For example, if a broker has lunch with
> a client and is told verbally to take a particular action, is the broker
> then required to put that conversation in writing or even tape the
> conversation during the lunch?


In this specific example (broker/dealer transactions), it seems the ruling
would come from here

http://www.law.uc.edu/CCL/34ActRls/rule17a-3.html

With definitions of the "who must do what" coming from here

http://www.law.uc.edu/CCL/34Act/sec15.html

I don't think there's a simple answer to this, as it appears much is subject
to interpretation related to the types of products the recommendation is
made about, the physical location of the broker/dealer and the client. the
size of the transaction, even the timing of the transaction.

Given the changes in the laws over the past 3-4 years, if I were a
broker/dealer I would make records of any recommendations or transactions I
was involved in if I knew they were potentially subject to scrutiny.

If I knew I was required to make records of them, I don't think I would make
these in casual conversation, such as over lunch, unless there was a paper
copy of the recommendation I made, or I would likely preface any comment
with something that would keep it from being construed as a formal,
professional, recommendation.

And you know me Ginny... no attorney here, and once again, I must declare
publicly that I DID NOT even sleep in a Holiday Inn Express last night... =)

Larry
-- 
Larry Medina
Danville, CA
RIM Professional since 1972

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