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Record Keeping Comply with regulated record keeping requirements
An FSCA inspector asks for the records about a representative who left the FSP four years ago. The FSP destroyed them two years after he left, as its internal retention policy allows. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The FSP breached the rules only if a client had complained about him.
- b) The FSP complied, because its own retention policy governs the period.
- c) The FSP's policy breaches the five-year minimum for keeping records.Correct
- d) The FSP complied, because records of former representatives need not be kept.
Why this is the answer
FAIS records must be kept for at least five years. An FSP's internal policy may require more, but not less. Destroying the records after two years breached the minimum, whether or not anyone had complained.
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