New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.9 - BROKER-DEALERS RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
Every registered broker-dealer not subject to
				  12.11.3.8
				  NMAC shall prepare and keep current the following books and records relating to
				  its business:
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; such records shall show the account for which each such
				transaction was effected, the name and amount of securities, the unit and
				aggregate purchase or sale price (if any), the trade date, and the name or
				other designation of the person from whom purchased or received or to whom sold
				or delivered;
B. ledgers or other
				records reflecting all assets and liabilities, income, expense and capital
				accounts;
C. ledgers or other
				records reflecting securities in transfer, dividends and interest received,
				securities borrowed and securities loaned, moneys borrowed and moneys loaned
				(together with a record of the collateral therefor and any substitutions in the
				collateral), and securities failed to receive and failed to deliver;
D. 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 the broker-dealer
				for its account or for the account of its customers or partners, and 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;
E.
				a memorandum of each order (order ticket), and of any other instruction given
				or received for the purchase or sale of securities, whether executed or
				unexecuted; the memorandum shall show the terms and conditions of the order or
				instruction; any modification or cancellation thereof; the account for which
				entered; whether the transaction was unsolicited; the time of entry; the price
				at which executed; and, to the extent feasible, the time of execution or
				cancellation; orders entered pursuant to the exercise of discretionary power by
				the broker-dealer, or any employee thereof, shall be so designated; the term
				"time of entry" shall mean the time when the broker-dealer transmits the order
				or instructions for execution or, if it is not so transmitted, the time when it
				is received;
F. a memorandum (order
				ticket) of each purchase and sale of securities for the account of the
				broker-dealer showing the price and, to the extent feasible, the time of
				execution;
G. copies of
				confirmations of all purchases and sales of securities, whether the
				confirmations are issued by the broker-dealer or the issuer of the security
				involved, and copies of notices of all other debits and credits for securities,
				cash and other items for the account of customers and partners of the
				broker-dealer;
H. copies of all
				communications, correspondence and other records relating to securities
				transactions with customers;
I. a
				separate file containing all complaints made or submitted by customers to the
				broker-dealer or its agents relating to securities transactions; in this
				subsection, "complaint" means any written or oral statement of a customer
				alleging a grievance involving the activities of persons under the control of
				the broker-dealer in connection with the solicitation or execution of any
				transaction or the disposition of any securities or funds of that customer that
				would constitute a violation of the New Mexico Uniform Securities Act or any
				rule or order thereunder;
J. a
				customer information form (new account information worksheet) for each
				customer; if recommendations are to be made to the customer, the form shall
				include information regarding the customer's name, address, telephone number,
				age, occupation, annual income, net worth and investment objectives or, if the
				customer refuses to provide the required information upon request, a notation
				to that effect;
K. for each cash
				and margin account established and maintained with the broker-dealer,
				information setting forth the name and address of the beneficial owner of each
				account, and copies of all guarantees of accounts and all margin, lending and
				option agreements; in the case of joint, partnership, corporate and limited
				liability accounts, the records required by this subsection must be executed by
				persons authorized to transact business for the account;
L. copies of all powers of attorney and other
				evidence of the granting of any discretionary authority with respect to a
				customer's account;
M. a record of
				the proof of money balances of all ledger accounts in the form of trial
				balances;
N. all partnership
				agreements or, in the case of a corporation, all articles of incorporation,
				by-laws, minute books and stock certificate books or, in the case of a limited
				liability company, all articles of organization and operating agreements of the
				broker-dealer;
O. a separate file
				containing copies of all advertising by the broker-dealer in the conduct of its
				securities business; and
P. a
				computation made quarterly (on a calendar year basis) of its net capital and
				ratio of its aggregate indebtedness to its net capital on form X-17A-5 of the
				SEC's FOCUS report as it may be amended from time to time.