Law / United States

Exchange Act Rule 17a-4, records to be preserved by certain exchange members, brokers and dealers

17 CFR 240.17a-4

In force since 3 Jan 2023.

An AI sector rules rule binding private bodies.

Enforcement body

Securities and Exchange Commission

Instrument type

a regulation made under an act

Obligation class

Retention, Governance

Audit expectation

on_request

Who audits it

Regulator

Where the report goes

Kept, Produced on request

As of 10 October 2026.

What it requires

• It reaches you if you are a member of a national securities exchange that transacts a business in securities directly with others than members of a national securities exchange, a broker or dealer that transacts a business in securities through the medium of such a member, or a broker or dealer registered under section 15 of the Exchange Act (including a security-based swap dealer or major security-based swap participant that is also a registered broker or dealer): preserve for not less than six years, the first two years in an easily accessible place, the records Rule 17a-3(a)(1) through (3), (5), (21) and (22) require, and analogous records created under Rule 17a-3(e) (Rule 17a-4(a)).
• Preserve for not less than three years, the first two years in an easily accessible place, the originals of all communications received and copies of all communications sent (and any approvals thereof) relating to your business as such, including inter-office memoranda and communications and communications subject to the rules of a self-regulatory organization of which you are a member regarding communications with the public (Rule 17a-4(b)(4)).
• Preserve for not less than three years, the first two years in an easily accessible place, the other records Rule 17a-4(b) lists, among them check books, bank statements, cancelled checks and cash reconciliations, bills receivable or payable, written agreements entered into relating to your business, and records of discretionary authority given in respect of any account (Rule 17a-4(b)(2), (3), (6) and (7)).
• Preserve account cards and records that relate to the terms and conditions of opening and maintaining a customer's account for not less than six years after the account is closed (Rule 17a-4(c)).
• If you keep records on an electronic recordkeeping system, use one that either preserves a record for the duration of its retention period with a complete time-stamped audit trail (all modifications to and deletions of the record, the date and time of actions that create, modify, or delete it, and, if applicable, the identity of the individual who did so) or preserves the records exclusively in a non-rewriteable, non-erasable format (Rule 17a-4(f)(2)(i)).
• Make the system verify automatically the completeness and accuracy of the processes for storing and retaining records electronically, and give it the capacity to readily download and transfer copies of a record and its audit trail (if applicable) in a human readable format and in a reasonably usable electronic format (Rule 17a-4(f)(2)(ii) and (iv)).
• Include a backup electronic recordkeeping system that serves as a redundant set of records, or other redundancy capabilities designed to ensure access to the records (Rule 17a-4(f)(2)(v)).
• At all times have available for examination by the staffs of the Commission, the self-regulatory organizations of which you are a member, and any State securities regulator having jurisdiction facilities for immediately producing the records preserved on the system and for producing copies of them, and be ready to provide immediately any record they request (Rule 17a-4(f)(3)(i) and (ii)).
• At all times have filed with your designated examining authority the undertakings Rule 17a-4(f)(3)(v) sets out, signed by a designated executive officer or a designated third party, to furnish the records promptly on request and to download them in a usable format if you fail to (Rule 17a-4(f)(3)(v)).
• If an outside service bureau, depository, bank, or other recordkeeping service prepares or maintains your records, make sure that entity files with the Commission the written undertaking Rule 17a-4(i) requires; the agreement does not relieve you of the responsibility to prepare and maintain the records (Rule 17a-4(i)).
• Furnish promptly to a representative of the Commission legible, true, complete, and current copies of the records required to be preserved under Rule 17a-4, or any other records subject to examination under section 17(b) of the Exchange Act that are requested, and furnish a record and its audit trail (if applicable) in a reasonably usable electronic format if requested (Rule 17a-4(j)).

When LexLint raises it

When your app profile says your app provides financial services.

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