On the other hand, the benefits to the investing public are enormous. The amendments allow firms sufficient flexibility to store the records in the most cost effective manner. Small firms may wish to store hard copy documents in a file cabinet. A uniform, nation-wide requirement as to books and records will benefit both the industry and regulators. Brokerage firms will have a clear understanding and expectation of what records are required.
Regulators can tailor and streamline their exam procedures to be more efficient.
This will facilitate thorough and quick examinations. Firms with no violations will experience less intrusion. Firms with violations will be promptly identified. This information will make firms more accountable for unregistered activity and sales practice violations and allow detection of such violations in a more expedient manner. The reproposal provides firms sufficient flexibility to meet this requirement.