FINRA adopted new rules that govern books and records  - FINRA Rules 2268, 4511, 4512, 4513, 4514, 4515, 5340 and 7440(a)(4).  Effective date is 12/5/11.  

Modeled after NASD Rule 3110, NYSE Rule 440 and NYSE Rule Interpretations 410/01 and 410/02, the new rules will require member firms to make and preserve certain books and records to show compliance with applicable securities laws, rules and regulations - and to enable FINRA and SEC staffs to conduct effective examinations.  In general, the new rules streamline, strengthen and clarify existing requirements.

        General Requirements.   FINRA Rule 4511, which is based on the general recordkeeping requirements of NASD Rule 3110(a) and NYSE Rule 440, clarifies that firms are obligated to:  (i) make and preserve books and records as required under the rules of FINRA, the Securities Exchange Act (SEA) and the applicable SEA rules;  and (ii) preserve the books and records required to be made pursuant to the FINRA rules in a format and media that complies with SEA Rule 17a-4. 

Additionally, FINRA Rule 4511 requires firms to preserve for a period of at least 6 years those FINRA books and records for which there is no specified retention period under the FINRA rules or applicable SEA rules.  This 6-year retention period is a default retention period for those FINRA rules that require firms to preserve certain books and records, but do not specify a retention period, and where there is no retention period specified underthe SEA rules.  Absent contrary guidance in a rule, if the books and records pertain to an account, the retention period is for 6 years after the date the account is closed;  otherwise, the retention period is for 6 years after such books and records are made.

    FINRA Staff Contact.   Direct questions to Afshin Atabaki, Office of General Counsel - (202) 728-8902.

 For further details, go to:  [FINRA Reg Note 11-19, April 2011]