Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69W - Securities › Chapter 69W-600 - REGISTRATION OF DEALERS, INVESTMENT ADVISERS, ASSOCIATED PERSONS › Section 69W-600.014 - Books and Records Requirements

Current through Reg. 50, No. 138; July 16, 2024
Except as otherwise provided herein, every dealer, investment
				  adviser, branch office, and associated person conducting business in this state
				  shall prepare and maintain on a current basis, and preserve for the periods of
				  time specified, such records, prescribed herein, as are appropriate for said
				  dealer's, investment adviser's, branch office's, or associated person's course
				  of business, and are sufficient to provide an audit trail of all business
				  transactions by said dealer, investment adviser, associated person, or branch
				  office. Associated persons who conduct business from a branch office
				  notice-filed in this state shall be exempt from the provisions of this
				  rule.
(1) All dealers are required to
				prepare and maintain appropriate books and records relating to their business
				as described in SEC Rules 17a-3 or 17a, (17 C.F.R. §§
										240.17a-3,
				240.17a-4), section 248.30 of
				Regulation S-P (17 C.F.R.
				§
										248.30), section 240.15l-1 of
				Regulation Best Interest (17
				C.F.R. §
										240.15l-1), and MSRB Rules G-7,
				G-8 and G-9; and records evidencing compliance with Financial Industry
				Regulatory Authority (FINRA) Rule 1020 and FINRA rules contained in the Rule
				2000 Series (Duties and Conflicts), Rule 3000 Series (Supervision and
				Responsibilities Relating to Associated Persons), Rule 4000 Series (Financial
				and Operational Rules), and Rule 5000 Series (Securities Offering and Trading
				Standards and Practices). The foregoing rules are incorporated by reference in
				Rule 69W-200.002, F.A.C.
(2) All investment advisers, notwithstanding
				the fact that the investment adviser is not registered or required to be
				registered under the Investment Advisers Act of 1940, shall prepare and
				maintain true, accurate and current records relating to their business as
				described in SEC Rule 204-2, (17 C.F.R. §
										275.204-2), which
				is incorporated by reference in Rule 69W-200.002, F.A.C. Notwithstanding SEC
				Rule 204-2, (17 C.F.R.
				§275.204-2), investment adviser records
				requirements do not include Form CRS. Investment advisers shall have available
				for the Office of Financial Regulation at least the following records:
(a) All trial balances, financial statements
				prepared in accordance with United States generally accepted accounting
				principles, and internal audit working papers relating to the investment
				adviser's business as an investment adviser. For purposes of this paragraph,
				"financial statements" means balance sheets, income statements, cash flow
				statements and net worth computations as required by Rule
				69W-600.0161, F.A.C.
(b) A list or other record of all accounts
				with respect to the funds, securities, or transactions of any client.
(c) A copy in writing of each agreement
				entered into by the investment adviser with any client.
(d) A file containing a copy of each record
				required by SEC Rule 204-2(11), (17 C.F.R. §
											275.204-2(11)), including
				any communication by electronic media that the investment adviser circulates or
				distributes, directly or indirectly, to two or more persons, other than persons
				connected with the investment adviser.
(e) A copy of each written statement and each
				amendment or revision given or sent to any client or prospective client of the
				investment adviser in accordance with the provisions of SEC Rule 204-3,
				(17 C.F.R. §
											275.204-3), which is incorporated by
				reference in Rule 69W-200.002, F.A.C., and a record of the dates that each
				written statement, and each amendment or revision was given or offered to be
				given to any client or prospective client who subsequently becomes a
				client.
(f) For each client that
				was obtained by the adviser by means of a solicitor to whom a cash fee was paid
				by the adviser, records required by SEC Rule 206(4)-1, ( 17 C.F.R.
				§275.206(4)-1), which is incorporated by reference in Rule 69W-200.002,
				F.A.C.
(g) All records required by
				SEC Rule 204-2(16), (17
				C.F.R. §
											275.204-2 (16)).
(h) A file containing a copy of all
				communications received or sent regarding any litigation involving the
				investment adviser or any associated person of the investment adviser or
				employee, and regarding any customer or client complaint.
(i) Written information about each investment
				advisory client that is the basis for making any recommendation or providing
				any investment advice to such client.
(j) Written procedures to supervise the
				activities of employees and associated persons of the investment adviser that
				are reasonably designed to achieve compliance with applicable securities laws
				and regulations.
(k) A file
				containing a copy of each document, other than any notices of general
				dissemination, that was filed with or received from any state or federal agency
				or self regulatory organization and that pertains to the registrant or its
				associated persons. Such file should contain, but is not limited to, all
				applications, amendments, renewal filings, and correspondence.
(l) A copy of each invoice the investment
				adviser sends to its clients each time an advisory fee is deducted from
				clients' accounts.