Compilation of Rules and Regulations of the State of Georgia › Department 590 - RULES OF OFFICE OF SECRETARY OF STATE › Chapter 590-4 - COMMISSIONER OF SECURITIES › Subject 590-4-5 - BROKER-DEALERS AND AGENTS › Rule 590-4-5-.06 - Books and Records

Current through Rules and Regulations filed through June 27, 2024
(1) All broker-dealers and agents who are
				registered or required to be registered with the SEC or are members of FINRA or
				any national securities exchange registered with the SEC shall make, keep and
				preserve such records as the SEC, FINRA, and national securities exchanges
				registered with the SEC require be made, kept, and preserved. These records
				shall be subject to inspection by the Commissioner. The records of a
				broker-dealer and agent registered or required to be registered under the Act
				are subject to such reasonable periodic or special inspections by a
				representative of the Commissioner as the Commissioner considers necessary or
				appropriate in the public interest and for the protection of investors. An
				inspection may be made at any time and without prior notice. The Commissioner
				may copy and remove any record the Commissioner reasonably considers necessary
				or appropriate to conduct the inspection. The fee for a routine examination of
				a broker-dealer shall be thirty-five (35) dollars per working hour with the
				total fee not to exceed $1,000.
(2)
				Broker-dealers that are not registered with the SEC or are not members of FINRA
				or of any national securities exchange registered with the SEC shall make and
				keep the following records:
(a) Blotters (or
				other records of original entry) containing an itemized daily record of all
				purchases and sales of securities, all receipts and deliveries of securities
				(including certificate numbers), all receipts and disbursements of cash and all
				other debits and credits. These records shall show the account for which each
				such transaction was effected, the names and amount of securities, the unit and
				aggregate purchase or sale price (if any), the trade date and the names or
				other designation of the person(s) from whom, purchased or received or to whom
				sold or delivered.
(b) Ledgers (or
				other records) reflecting all assets and liabilities, income and expenses and
				capital accounts.
(c) Ledger
				accounts (or other records) itemizing separately, as to each cash and margin
				account of every customer and of such broker-dealer and partners thereof, all
				purchases, sales, receipts, and deliveries of securities for such account and
				all other debits and credits to such account.
(d) Ledgers (or other records) reflecting the
				following:
1. Securities in
				transfer;
2. Dividends and interest
				received;
3. Securities borrowed
				and securities loaned;
4. Money
				borrowed and money loaned (together with a record of the collateral therefore
				and any substitutions in such collateral); and
5. Securities failed to receive and failed to
				deliver.
(e) A
				securities record or ledger reflecting separately for each security, as of the
				clearance dates, all "long" or "short" positions (including securities in
				safekeeping) carried by such broker-dealer for its account or for the account
				of its customers or partners showing the location of all securities "long" and
				the offsetting position to all securities "short" and, in all cases, the name
				or designation of the account in which each position is carried.
(f) A memorandum of each brokerage order and
				of any other instruction given or received for the purchase or sale of
				securities whether executed or unexecuted. This memorandum shall show the terms
				and conditions of the order or instruction and of any modification or
				cancellation thereof, the account for which the order or instruction was
				entered, the time of entry, the price at which the order or instruction was
				executed and, to the extent feasible, the time of execution or cancellation and
				whether the order was solicited or unsolicited. Orders entered pursuant to the
				exercise of discretionary power by such broker-dealer, or any associated person
				thereof, shall be so designated. The term "instruction" shall be deemed to
				include instructions between partners and associated persons of a
				broker-dealer. The term "time of entry" shall be deemed to mean the time when
				such broker-dealer transmits the order or instruction for execution, or, if it
				is not so transmitted, the time when it was received.
(g) A memorandum of each purchase or sale of
				securities for the account of such broker-dealer showing the price and, to the
				extent feasible, the time of execution; and, in addition, where such purchase
				or sale is with a customer other than a broker or dealer, a memorandum of each
				order received, showing the time of receipt, the terms and conditions of the
				order, and the account in which it was entered.
(h) Copies of confirmations of all purchases
				and sales of securities and copies of notices of all other debits and credits
				for securities, cash and other items for the accounts of customers and partners
				of such broker-dealer.
(i) A record
				in respect of each cash and margin account with such broker-dealer containing
				the name and address of the beneficial owner of such account and, in the case
				of a margin account, the signature of such owner; provided, however, that in
				the case of a joint account or an account of a corporation, limited liability
				company or partnership, such records are required only in respect of the person
				or persons authorized to transact business for such account.
(j) A record of all puts, calls, spreads,
				straddles and other options that such broker-dealer has granted or guaranteed
				containing, at least, an identification of the security and the number of units
				involved.
(k) A record of the proof
				of money balances of all ledger accounts in the form of trial balances. These
				trial balances shall be prepared currently at least once a month.
(l) An application for employment executed by
				each "associated person" (as hereinafter defined) of such broker-dealer that is
				approved in writing by an authorized representative of such broker-dealer and
				contains at least the following information with respect to such associated
				person:
1. Name, address, social security
				number and the starting date of employment or other association with the
				broker-dealer;
2. Date of
				birth;
3. The educational
				institutions attended and whether the associated person graduated
				therefrom;
4. A complete,
				consecutively ordered statement of all business connections for at least the
				preceding seven (7) years, including reason(s) for leaving each prior
				employment and whether the employment was part-time or full-time;
5. A record of any denial of membership or
				registration and of any disciplinary action taken or sanction imposed upon him
				or her by any Federal or State agency or any national securities exchange or
				national securities association, including any finding that he or she was a
				cause of any disciplinary action or had violated any law;
6. A record of any denial, suspension,
				expulsion or revocation of membership in any national securities association,
				securities exchange or registration with any state, federal or governmental
				agency with which he or she was associated in any capacity when such action was
				taken;
7. A record of any permanent
				or temporary injunction entered against him or her or any member of a national
				securities association or stock exchange or broker or dealer with which he or
				she was associated in any capacity at the time such injunction was
				entered;
8. A record of any
				arrests, indictments or convictions for any felony or any misdemeanor, except
				minor traffic offenses, of which he or she has been the subject;
9. A record of any other name or names by
				which he or she has been known or has used; and
10. A record of all licenses, registrations
				and memberships related to securities that he or she holds.
11. For purposes of Subsection (2)(l) of this
				Rule, the term "associated person" shall mean a partner, officer, director,
				agent, trader, manager, any employee or any independent contractor handling
				funds or securities or soliciting transactions or accounts for such
				broker-dealer.