Chapter 2: Post Execution Activities for Financing Deals

Question 1

6 Year Records

Answer 1

Original security and cash transactions.
Customer ledger accounts.
Broker dealer ledger accounts.
All short and long positions.

Question 2

3 Year Records

Answer 2

Ledgers of txns other than securities.
Memoranda of instructions.
Txn confirmations.
Cash and margin account records.
Records of options.
General business and financial records.

Question 3

Records to be Kept Current

Answer 3

Written Customer Complaints.
Broker dealer / associated person agreements.
Compliance rules.

Question 4

Rule 17a-4: Electronic Records Storage

Answer 4

Must notify examining authority in advance. If exclusively stored electronically, must get 3rd party involved.

Question 5

Rule 17a-4(g): Going Out of Business

Answer 5

If going out of business or leaving securities industry, must still preserve records as required.

Question 6

Syndicate Expenses

Answer 6

Pro rata share taken out of the underwriting fee.