Books and Records

Regulatory status current as of June 2026 — verify effective dates, dollar thresholds, and pending rulemakings against current SEC/FINRA/FinCEN sources before advising.

Core Concepts

SEC Rule 17a-3 (Records to be Made)

SEC Rule 17a-3 (17 CFR 240.17a-3) specifies the books and records that every registered broker-dealer must create and maintain. These records form the foundation of regulatory oversight, enabling examiners to reconstruct transactions, verify compliance, and protect investors. The principal categories of required records are:

• Blotters (daily records): Purchase and sale blotters recording every securities transaction (date, time, security, quantity, price, counterparty), cash receipts and disbursements blotters recording all cash flows, and securities received and delivered blotters tracking the movement of securities into and out of the firm.
• General ledger: A complete general ledger reflecting all assets, liabilities, income, expense, and capital accounts of the broker-dealer. Must be current and maintained in accordance with generally accepted accounting principles.
• Customer account records: For each customer account, the firm must create and maintain records containing: customer name and tax identification number (SSN or EIN), address, telephone number, date of birth, employment status and name of employer, whether the customer is an associated person of another broker-dealer, investment objectives, annual income and net worth, and the names of persons authorized to transact on the account. The 2003 amendments to Rule 17a-3 (Exchange Act Release No. 34-47910) expanded customer account record requirements to include customer investment profile information — specifically, investment objectives (e.g., capital preservation, income, growth, speculation), investment time horizon, risk tolerance, and other information the firm uses in making recommendations. Firms must also record the date the account was opened and the name of the associated person responsible for the account.
• Order tickets: A memorandum of each order received for the purchase or sale of securities, showing the terms of the order, the time of entry, the time of execution, the price, and the identity of the associated person who accepted and executed the order. For discretionary orders, the ticket must identify that discretion was exercised.
• Confirmations: Copies of all trade confirmations sent to customers and received from counterparties pursuant to SEC Rule 10b-10.
• Memoranda of proprietary orders: Records of each purchase and sale of securities for the firm's proprietary accounts, including the identity of the person who authorized the transaction.
• Customer complaints: A record of each written customer complaint received by the firm, including the complainant's name, the date the complaint was received, the subject matter, and the firm's response or disposition. FINRA Rule 4513 supplements this requirement with specific complaint recordkeeping standards.
• Associated person employment applications: Records related to associated persons including Form U4 (Uniform Application for Securities Industry Registration), employment history, disciplinary history, and background investigation results. These records must include the associated person's name, date of birth, address, and the starting date of employment or association with the firm.