Quick Answer
The FINRA general-recordkeeping rule sets the top-level requirement that members must make and preserve books and records as required by FINRA, the Securities Exchange Act of 1934 (SEA), and applicable SEA rules. The substantive list of records that broker-dealers must CREATE and keep current lives in the SEC's "records to be made" rule. The two work together: the FINRA rule hooks into the SEC regime; the SEC rule provides the substance.
The act of CREATING required records is governed by two layers of rules. The FINRA layer sets the general requirement and the default retention floor; the SEC's "records to be made" rule provides the detailed list of records that must be CREATED and kept CURRENT.
The FINRA General-Recordkeeping Rule
The FINRA books-and-records general requirement sets the broker-dealer's top-level recordkeeping obligation. It does three things:
- Members must make and preserve books and records as required by:
- The FINRA rules
- The Securities Exchange Act of 1934 (SEA), and
- Applicable SEA rules
- Default retention floor: members must preserve, for at least 6 years, those FINRA books and records for which no other retention period is specified
- Required books and records must be preserved in a format and media that complies with the SEC's "records to be preserved" rule
Think of it this way: The FINRA general-recordkeeping rule is the hook. It tells you that FINRA expects members to comply with the SEC recordkeeping regime, and it sets a 6-year default for any FINRA record that does not have its own retention timeline. The substantive list of WHAT to make lives in the SEC's "records to be made" rule; the substantive retention periods live in the SEC's "records to be preserved" rule.
Exam Tip: Gotchas
- The FINRA general-recordkeeping rule is the hook, not the substance. Do not try to answer "which records must broker-dealers create?" from the FINRA general rule alone. The substantive list lives in the SEC's "records to be made" rule.
- The FINRA default-retention floor is 6 years, but only for FINRA records that do not have their own specified period. Records that ARE covered elsewhere (order tickets, customer communications) follow their specific period, not the 6-year default.
The SEC "Records To Be Made" Rule
The SEC's "records to be made" rule provides the substantive list. It:
- Applies to every member, broker, or dealer registered under the Securities Exchange Act of 1934
- Specifies the records that must be CREATED and kept CURRENT
- Requires that records reflect the activity as of the date it occurs and generally be prepared no later than the following business day
- Requires that records be made and kept current as to each office for specified categories (blotters, order tickets, customer-account information, and others)
The core records broker-dealers must MAKE under the "records to be made" rule include:
| Record | What It Captures |
|---|---|
| Blotters (records of original entry) | Itemized daily record of all purchases and sales of securities, receipts and deliveries of securities, receipts and disbursements of cash, and other debits and credits |
| General ledger | Assets, liabilities, capital, income, expense |
| Securities ledger | Long and short positions, location of all securities held |
| Customer ledgers | Each cash and margin account with the broker-dealer |
| Securities record / stock record | All securities the broker-dealer is long or short, by name, with location |
| Order tickets | Memoranda of each brokerage order (received and executed) and dealer transaction |
| Trial balances and net-capital computations | Monthly trial balance and computation of aggregate indebtedness and net capital |
| Customer-account records | Name, tax ID, address, telephone, date of birth, employment status, annual income, net worth, investment objectives |
| Associated-person records | Compensation, employment history, disciplinary record |
| Personnel "explain records" list | List of personnel responsible for explaining each type of record |
Think of it this way: Picture every broker-dealer as a factory that produces paper (or, in 2026, mostly electrons). The "records to be made" rule is the factory's bill of materials: blotters track what came in and out today, ledgers track the running balances, order tickets capture every customer instruction, and customer-account records hold the "know your customer" file. None of it is optional, and almost all of it has to be current by the next business day.
Exam Tip: Gotchas
- The "records to be made" rule is "MAKE"; the "records to be preserved" rule is "PRESERVE." The "records to be made" rule tells you which records must EXIST and be CURRENT. The "records to be preserved" rule tells you HOW LONG to keep them and in WHAT FORMAT. Mixing the two is a classic exam trap.
- Records must be current as of the date of the activity, generally prepared no later than the following business day. A backlog of unposted blotter entries is a recordkeeping violation, not a clerical issue.
- Customer-account records include the investment-objective file, not just name and address. The know-your-customer file (income, net worth, investment objectives, time horizon) is part of the required "records to be made" record set.
The Deal File's Place in the SEC Recordkeeping Universe
Underwriting-specific documents do not sit outside the SEC recordkeeping framework: they are required books and records of a broker-dealer acting as underwriter. The deal-file contents map into the SEC rules as follows:
- Underwriting agreement, agreement among underwriters, allocation records, syndicate correspondence: Required books and records of a broker-dealer acting as underwriter, retained as part of the firm's "records to be made" record set
- Communications with the issuer, syndicate, and selling group: Flow into the SEC communications-retention regime under the "records to be preserved" rule, which covers letters, emails, instant messages, and business-related social media
- Order tickets and allocation records for the new-issue distribution: Order-ticket records under the "records to be made" rule, with their own retention period under the "records to be preserved" rule
Exam Tip: Gotchas
- Underwriting-specific records are NOT a separate regulatory regime. They are required broker-dealer records that flow through the same SEC "records to be made" and "records to be preserved" rules as every other broker-dealer record. The Series 79 expects you to know the deal file is just one slice of the firm's recordkeeping obligations.
- Syndicate correspondence is part of the communications-retention regime, not the order-ticket regime. Emails between co-managers about allocations are letters/electronic communications retained under the communications cut, even though they relate to a transaction.