Study guide
13.3 Recordkeeping Requirements
Series 65 Uniform Investment Adviser Law
Track your progress as you read
Finished sections get a check mark.
1 Introduction
About the Series 65 How to Use This Guide
2 Chapter 1: Economic Factors & Business Cycles
1.1 Business Cycles 1.2 Monetary Policy 1.3 Fiscal Policy 1.4 Inflation & Deflation 1.5 Interest Rates & Yield Curves 1.6 Global Economic Factors
3 Chapter 2: Financial Reporting & Analytical Methods
2.1 Financial Statements Overview 2.2 Accounting Fundamentals 2.3 SEC Filings & Annual Reports 2.4 Financial Ratios 2.5 Time Value of Money 2.6 IRR and NPV 2.7 Descriptive Statistics
4 Chapter 3: Types of Risk
3.1 Systematic (Market) Risk 3.2 Unsystematic (Company-Specific) Risk 3.3 Interest Rate & Reinvestment Risk 3.4 Inflation & Currency Risk 3.5 Liquidity Risk & Opportunity Cost 3.6 Risk Measurement & Portfolio Theory
5 Chapter 4: Cash Equivalents & Fixed Income Securities
4.1 Cash & Cash Equivalents 4.2 Treasury Securities 4.3 Agency Securities 4.4 Corporate Bonds 4.5 Municipal Bonds 4.6 Bond Pricing & Yields
6 Chapter 5: Equity Securities
5.1 Common Stock 5.2 Preferred Stock 5.3 Shareholder Rights & Corporate Actions 5.4 Equity Valuation Methods 5.5 ADRs, REITs & Other Equity Securities
7 Chapter 6: Pooled Investments
6.1 Mutual Funds 6.2 Mutual Fund Costs & Fees 6.3 Exchange-Traded Funds (ETFs) 6.4 Closed-End Funds & UITs 6.5 Hedge Funds & Private Equity
8 Chapter 7: Derivatives, Alternative Investments & Insurance Products
7.1 Options Basics 7.2 Options Strategies 7.3 Alternative Investments 7.4 Annuities 7.5 Life Insurance Products
9 Chapter 8: Client Types & Profiles
8.1 Individual Clients 8.2 Business Entity Clients 8.3 Trusts & Estates 8.4 Accredited & Qualified Investors 8.5 Suitability & Know Your Customer
10 Chapter 9: Portfolio Theory & Capital Markets
9.1 Modern Portfolio Theory 9.2 Capital Asset Pricing Model (CAPM) 9.3 Efficient Market Hypothesis 9.4 Risk & Performance Measures 9.5 Asset Allocation
11 Chapter 10: Portfolio Management Strategies
10.1 Investment Styles 10.2 Portfolio Management Techniques 10.3 Fixed Income Strategies 10.4 Return Calculations
12 Chapter 11: Tax Considerations & Retirement Planning
11.1 Capital Gains & Investment Taxes 11.2 Retirement Plans Overview 11.3 Individual Retirement Accounts (IRAs) 11.4 Education Savings Plans 11.5 Distributions & RMDs
13 Chapter 12: ERISA, Special Accounts & Performance Measures
12.1 ERISA Requirements 12.2 Special Account Types 12.3 Performance Measures & Reporting 12.4 QDROs & Special Situations
14 Chapter 13: Regulation of Investment Advisers
13.1 Investment Advisers Act of 1940 13.2 Registration Requirements 13.3 Recordkeeping Requirements 13.4 Custody Requirements 13.5 Exempt Reporting Advisers
15 Chapter 14: Regulation of Investment Adviser Representatives
14.1 IAR Definition & Requirements 14.2 Registration & Post-Registration 14.3 IARs of Federal Covered Advisers
16 Chapter 15: Regulation of Broker-Dealers & Agents
15.1 Broker-Dealer Definition 15.2 Agent Registration 15.3 Regulation Best Interest
17 Chapter 16: Securities Registration & Exemptions
16.1 Uniform Securities Act 16.2 Securities Registration Methods 16.3 Exempt Securities 16.4 Exempt Transactions
18 Chapter 17: Communications & Client Relationships
17.1 Advertising Rules 17.2 Social Media & Electronic Communications 17.3 Client Agreements & Disclosure 17.4 Proxy Voting & Other Obligations
19 Chapter 18: Ethics & Fiduciary Obligations
18.1 Fiduciary Duties 18.2 Prohibited Practices 18.3 Senior & Vulnerable Adult Protection 18.4 AML & Compliance Programs
13.3 Recordkeeping Requirements
Key Takeaways Explain This Topic AI
Most records must be kept for five years with the first two years readily accessible.
Records include correspondence, recommendations, ads, and compliance documents.
Electronic records are acceptable with safeguards and backups.
Regulators can examine records without prior notice.
Recordkeeping failures can lead to sanctions or revocation.
Last updated: December 2025
SEC Rule 204-2 and state equivalents require investment advisers to maintain extensive books and records. These requirements ensure compliance and enable regulatory examinations.
- Required Records Categories
- Business and Organizational Records
- Record Type Examples
- Formation Documents Articles of incorporation, partnership agreements, bylaws
- Governance Records Minute books, resolutions, ownership records
- Stock Certificates If organized as corporation
- Organizational Charts Current structure and control persons
- Financial Records
- Record Type Examples
- General Ledger All journal entries
- Trial Balances At least quarterly
- Financial Statements Balance sheets, income statements
- Bank Records Statements, canceled checks, reconciliations
- Bills and Invoices Paid and receivable
- Client Records
- Record Type Examples
- Client Agreements All investment advisory contracts
- Powers of Attorney Discretionary authority documentation
- Account Records Holdings, transactions, valuations
- Correspondence All written communications with clients
- Suitability Documentation Client profiles, investment objectives
- Advisory Activity Records
- Record Type Examples
- Written Recommendations All securities recommendations made
- Discretionary Accounts List Accounts with trading authority
- Trade Records Orders, confirmations, allocations
- Research Analyses supporting recommendations
- Performance Records Calculations supporting claims
- Compliance Records
- Record Type Examples
- Code of Ethics Including acknowledgments
- Compliance Policies Written procedures
- Access Person Reports Personal trading reports
- Advertising Files All advertisements and communications to 10+ persons
- Complaint Files Client complaints and resolutions
- Retention Periods
- Standard Five-Year Retention
- Requirement Details
- Total Period 5 years from creation
- First 2 Years Must be in an "appropriate office" (easily accessible)
- Remaining 3 Years May be stored elsewhere but must be retrievable
- Extended Retention
- Record Type Retention Period
- Partnership/Corporate Documents As long as entity exists + additional period
- Code of Ethics 5 years after last use
- Client Agreements 5 years after relationship ends
- Advertisements 5 years from last use
- After Termination
- Situation Requirement
- Adviser Deregisters Maintain records for required period after deregistration
- Adviser Merges Successor maintains records
- Adviser Liquidates Designate custodian for records
- Electronic Recordkeeping
- Requirements for Electronic Records
- Requirement Details
- Legibility Must be readable and printable
- Organization Arranged for easy location and retrieval
- Protection Safeguards against alteration or destruction
- Backup Duplicate copies required
- Audit Trail Ability to detect unauthorized changes
- Electronic Communications
- Type Requirement
- Emails Must be retained like other correspondence
- Texts/Instant Messages Must be captured and retained
- Social Media Business-related posts must be retained
- Format Searchable, retrievable format
On the Exam: The Dodd-Frank Act extended Rule 204-2 to include private fund advisers and hedge fund managers, expanding recordkeeping requirements significantly.
- Examination Authority
- SEC Examination Rights
- Authority Details
- Access May examine all books and records
- Notice No advance notice required
- Copying May copy any records
- Location May examine at adviser's premises or require production
- Third Parties May examine records maintained by third parties
- State Examination Authority
- Authority Details
- Parallel Powers Similar to SEC for state-registered advisers
- Coordination May coordinate with SEC
- Subpoena Power Can compel production of records
- Consequences of Recordkeeping Failures
- Consequence Description
- Registration Revocation Can lose registration
- Sanctions Fines, censure, bars from industry
- Inability to Defend Cannot prove compliance without records
- Presumption of Violation Missing records may create adverse inference
- Key Takeaways
- Most records must be kept for 5 years—first 2 years easily accessible
- Records include correspondence, recommendations, advertisements, and compliance documents
- Electronic records are acceptable but must be protected, backed up, and retrievable
- Regulators can examine records without prior notice
- Recordkeeping failures can result in sanctions and registration revocation