IANABDNRBTSEC (I am not a broker/dealer nor regulated by the SEC). As I have
read the relevant section, 17 CFR 240.17a-3 defines who is required to
comply, and 17 CFR 240.17a-4 requires that broker/dealers keep REQUIRED
communications regardless of media for three or six years depending on the
nature of the communication.
So it's not every single communication, but only relevant ones. That said, I
suspect a lot of companies are erring on the side of caution and in fact
keeping everything a broker/dealer sends or receives for the three or six
years as applicable.
From the guidance below,
"Rule 17a-3 requires broker-dealers to make certain records, including trade
blotters, asset and liability ledgers, income ledgers, customer account
ledgers, securities records, order tickets, trade confirmations, trial
balances, and various employment related documents. Rule 17a-4 specifies the
manner in which the records created in accordance with Rule 17a-3, and
certain other records produced by broker-dealers, must be maintained."
17a-3: http://www.law.uc.edu/CCL/34ActRls/rule17a-3.html
17a-4: http://www.law.uc.edu/CCL/34ActRls/rule17a-4.html
Guidance from the SEC which relates:
http://www.sec.gov/rules/interp/34-47806.htm
I strongly encourage everyone to read the guidance if not the actual
statutes. I couldn't quickly find a cite on a .gov site for the rules, but
I'm sure someone else can provide. :)
Jesse Wilkins
CDIA+, LIT, ICP, edp, ermm, ecms
IMERGE Consulting
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-----Original Message-----
From: Records Management Program [mailto:[log in to unmask]] On Behalf
Of Peter Kurilecz
Sent: Wednesday, December 20, 2006 11:36 AM
To: [log in to unmask]
Subject: Re: FW: NYTimes.com: Regulator Says Morgan Stanley Withheld E-Mail
in Cases
On 12/20/06, Larry Medina <[log in to unmask]> wrote:
>
>
> Can anyone confirm this comment from the above article?
>
> "Securities and Exchange Commission rules require that firms keep all
> e-mails and business communications for three years."
>
> Is it true that "...ALL e-mails and business communications..." must
> be kept for 3 years, or only those pertaining to certain types of
transactions???
here is the relevant citation
§ 240.17a-4 Records to be preserved by certain exchange members, brokers and
dealers.
(b) Every member, broker and dealer subject to § 240.17a-3 shall preserve
for a period of not less than three years, the first two years in an easily
accessible place:
(4) Originals of all communications received and copies of all
communications sent (and any approvals thereof) by the member, broker or
dealer (including inter-office memoranda and communications) relating to its
business as such, including all communications which are subject to rules of
a self-regulatory organization of which the member, broker or dealer is a
member regarding communications with the public.
so the minimum timeframe is 3 years, doesn't mean they cann't keep it longer
It all depends upon what retention decision was made by the firm. It is my
understanding that most if not all brokerages have decided on the 3 year.
note that the regulation states 'ALL COMMUNICATIONS" it does not
differentiate between emails and any other type of communication. The devil
is in the details
--
Peter Kurilecz CRM CA
Richmond, Va
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