Final answer:
If a BD fails to maintain Books and Records (Noncurrent Books and Records), it does not need to give notice to the SEC and its DEA. SEC Rule 17a-4 requires broker-dealers to maintain these records for a specific time period.
Step-by-step explanation:
If a BD fails to maintain Books and Records (Noncurrent Books and Records), it does not necessarily need to give notice to the SEC and its DEA. However, the BD must still maintain these books and records for a specified period of time, as required by regulations.
The SEC (Securities and Exchange Commission) is responsible for regulating and overseeing the securities industry in the United States. Under SEC Rule 17a-4, broker-dealers are required to maintain certain books and records, including noncurrent books and records, but there is no specific requirement to notify the SEC if they fail to maintain these records.
The DEA (Designated Examining Authority) is an organization appointed by the SEC to conduct financial and operational examinations of broker-dealers. While the BD may not need to give notice to the DEA if they fail to maintain noncurrent books and records, the DEA may discover this during their examination process and take appropriate action.