Question

A BIC must retain records for the firm for how long?

A) 5 years
B) 3 years from the date of closing
C) 3 years from the termination of the relationship
D) 3 years from the date of closing, the termination of the relationship or the distribution of all funds, whichever is later.

Answer 1

Broker-Dealer Investment Consultants are required to retain records for 3 years from the later of the date of closing, termination of the relationship, or distribution of all funds to comply with regulatory requirements.

Step-by-step explanation:

The question pertains to the record retention policy that Broker-Dealer Investment Consultants (BICs) must follow. According to the guidelines, a BIC must retain records for a period of 3 years from the date of closing, the termination of the relationship, or the distribution of all funds, whichever occurs later.

This ensures that the firm complies with regulatory requirements and that there is an adequate historical record of transactions and activities for both legal and compliance purposes.

The correct answer is D) 3 years from the date of closing, the termination of the relationship or the distribution of all funds, whichever is later. A Business Identifier Code (BIC) is a unique identification code for financial and non-financial institutions. According to regulations, a BIC must retain records for the firm for 3 years from the date of closing, the termination of the relationship, or the distribution of all funds, whichever occurs later.