Books & Records Requirements
State advisers keep records at least 5 years; the Administrator can inspect any time.
What is Books & Records Requirements?
Under NASAA's model rule, state-registered advisers keep required books and records for at least five years, the first two in an appropriate office of the adviser. The Administrator can examine them at any time without notice. For broker-dealers and federal covered advisers, a state cannot impose recordkeeping requirements beyond those set by the SEC.
Books & Records Requirements: a worked example
A state examiner arrives unannounced to review an adviser's client files - which the adviser must allow.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
All Uniform Securities Act & Registration terms · Full glossary