Current through Register Vol. 63, No. 9, September 1, 2024
(1) Every broker-dealer subject to OAR
441-195-0020 shall preserve for
a period of not less than six years all records required to be made pursuant to
441-195-0020(1)(a), (b), (c), (e), (r) (s),
(t), and analogous records created pursuant
to 441-195-0020(5).
The records for the most recent two years shall be kept in an easily accessible
place.
(2) Every such broker-dealer
shall preserve for a period of not less than three years, with the most current
two years being kept in an easily accessible place:
(a) All records required to be made pursuant
to OAR 441-195-0020(1)(d), (f), (g), (h), (i), (j), (n),
(p), (r), (u), and analogous records made
pursuant to 441-195-0020(5);
(b) All checkbooks, bank statements, canceled
checks, and cash reconciliations;
(c) All bills receivable or payable (or
copies thereof), paid or unpaid, relating to the business of such
broker-dealer, as such;
(d)
Originals of all communications received and copies of all communications sent
(and any approvals thereof) by such broker-dealer (including interoffice
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 broker-dealer is a member regarding communications with the public.
As used in this subsection, the term communications includes sales
scripts;
(e) All trial balances,
computations of aggregate indebtedness and net capital (and working papers in
connection therewith), financial statements, branch office reconciliations and
internal audit working papers, relating to the business of such broker-dealer,
as such;
(f) All guarantees of
accounts and all powers of attorney and other evidence of the granting of any
discretionary authority given in respect of any account, and copies of
resolutions empowering an agent to act on behalf of a corporation;
(g) All written agreements (or copies
thereof) entered into by such broker-dealer relating to its business as such,
including agreements with respect to any account;
(h) All notices relating to an internal
broker-dealer system provided to the customers of the broker-dealer that
sponsors such internal broker-dealer system. Notices, whether written or
communicated through the internal broker-dealer trading system or other
automated means, shall be preserved under this subsection if they are provided
to all customers with access to an internal broker-dealer system, or to one or
more classes of customers. Examples of notices to be preserved under this
subsection include, but are not limited to, notices addressing hours of system
operations, system malfunctions, changes to system procedures, maintenance of
hardware and software, and instructions pertaining to access to the internal
broker-dealer system.
(3) Every broker-dealer shall preserve for a
period of not less than six years after the closing of any customer's account
any account cards or records which relate to the terms and conditions with
respect to the opening and maintenance of such account.
(4) Every broker-dealer shall preserve during
the life of the enterprise and of any successor enterprise all partnership
articles or, in the case of a corporation, all Articles of Incorporation or
Charter, minute books and stock certificate books (or, in the case of any other
form of legal entity, all records such as articles of organization or
formation, and minute books used for a purpose similar to those records
required for corporations or partnerships), all Forms BD, all Forms BDW, all
amendments to these forms, and all licenses or other documentation showing the
registration of the broker-dealer with any securities regulatory
authority.
(5) Every broker-dealer
shall maintain and preserve in an easily accessible place:
(a) All records required under OAR
441-195-0020(1)(l) and
(1)(o) until at least three years after the
associated person has terminated the associated person's employment and any
other connection with the broker-dealer;
(b) All records required under OAR
441-195-0020(1)(m)
until at least three years after the termination of employment or association
of those persons required to be fingerprinted under the Securities Exchange Act
of 1934;
(c) All account record
information required pursuant to OAR
441-195-0010(1), (3) and
(4) until at least six years after the
earlier of the date the account was closed or the date on which the information
was replaced or updated;
(d) Each
report which a securities regulatory authority has requested or required the
broker-dealer to make and furnish to it pursuant to an order or settlement, and
each securities regulatory authority examination report until three years after
the date of the report;
(e) Each
compliance, supervisory, and procedures manual, including any updates,
modifications, and revisions to the manual, describing the policies and
practices of the broker-dealer with respect to compliance with applicable laws
and rules, and supervision of the activities of each natural person associated
with the broker-dealer until three years after the termination of the use of
the manual;
(f) All reports
produced to review for unusual activity in customer accounts until eighteen
months after the date the report was generated. In lieu of maintaining the
reports, a broker-dealer may produce promptly the reports upon request by the
director. If a report was generated in a computer system that has been changed
in the most recent eighteen month period in a manner such that the report
cannot reproduced using historical data in the same format as it was originally
generated, the report may be produced by using the historical data in the
current system, but must be accompanied by a record explaining each system
change which affected the reports.
(6) The records required to be maintained and
preserved pursuant to OAR
441-195-0010,
441-195-0020 and this rule may
be immediately produced or reproduced on microfilm, microfiche, or any similar
medium, or on any digital storage medium or system, and may be maintained and
preserved for the required time in that form. If such substitution for hard
copy is made by a broker-dealer, it shall:
(a)
At all times have available for examination of its records facilities for
immediate, easily readable projection or production of the media or images and
for producing easily readable images;
(b) Arrange the records and index in such a
manner as to permit the immediate location of any particular record;
(c) Be ready at all times to provide, and
immediately provide, any facsimile enlargement which may be requested;
and
(d) Store separately from the
original one other copy of the substitute storage media for the time
required.
(7) If a
person who has been subject to OAR
441-195-0020 ceases to be
licensed pursuant to ORS
59.165 or such other statute
dealing with licensing, such person shall, for the remainder of the periods of
time specified in this rule, continue to preserve the records which it
theretofore preserved pursuant to this rule.
(8) Every broker-dealer shall furnish
promptly to the director legible, true, complete, and current copies of those
records of the broker-dealer that are required to be preserved under this rule,
or any other records of the broker-dealer that are requested by the
director.
(9) Records for the most
recent two year period required to be made pursuant to OAR
441-195-0010(6)
and subsections (2)(d) and (5)(d) of this rule which relate to an office shall
be maintained at the office to which they relate. If an office is a private
residence where only one associated person (or multiple associated persons who
reside at that location and are members of the same immediate family) regularly
conducts business, and it is not held out to the public as an office nor are
funds or securities of any customer of the broker-dealer handled there, the
broker-dealer need not maintain records at that office, but the records must be
maintained at another location within the same state as the broker-dealer may
select. Rather than maintain the records at each office, the broker-dealer may
choose to produce the records promptly at the request of the director at the
office to which they relate or at another location agreed to by the
director.
Stat. Auth.: ORS
59
Stats. Implemented: ORS
59.195
