Question

How many years must a broker maintain all records and files?

a) 1 year.
b) 3 years.
c) 5 years.
d) 10 years.

Answer 1

Brokers must maintain all records and files for 5 years to ensure compliance and provide a record of transactions for auditing purposes.

Step-by-step explanation:

The correct answer is c) 5 years. A broker must maintain all records and files for a period of 5 years. This requirement is in place to ensure compliance with regulatory standards and to provide a record of transactions for auditing purposes.

By maintaining records for 5 years, brokers can refer back to past transactions, assess their performance, and address any disputes or inquiries that may arise. It also serves as a safeguard against any potential legal or regulatory issues that may arise in the future.

Overall, the 5-year requirement is an important part of the broker's responsibility to maintain accurate and secure records of their operations.