Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 195 - RECORDS AND REPORTS › Section 441-195-0020 - Business Records by Broker-Dealers

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Every broker-dealer shall make 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 and expense 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 and commodities for such accounts and
			 all other debits and credits to such account;
(d) Ledgers (or other records) reflecting the
			 following:
(A) Securities in
			 transfer;
(B) Dividends and
			 interest received;
(C) Securities
			 borrowed and securities loaned;
(D)
			 Monies borrowed and monies loaned (together with a record of the collateral
			 therefor and any substitutions in such collateral); and
(E) 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 and showing the location of all securities long
			 and the offsetting position to all securities short, including long security
			 count differences and short security count differences classified by the date
			 of the physical count and verification in which they were discovered 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. Such memorandum
			 shall show the terms and conditions of the order or instructions and of any
			 modification or cancellation thereof, the account for which entered, the time
			 the order was received, the time of entry, the price at which executed, the
			 identity of each associated person, if any, responsible for the account, the
			 identity of any other person who entered or accepted the order on behalf of the
			 customer or, if a customer entered the order on an electronic system, a
			 notation of that entry, and, to the extent feasible, the time of execution or
			 cancellation. The memorandum need not show the identity of any person, other
			 than the associated person responsible for the account, who may have entered or
			 accepted the order if the order is entered into an electronic system that
			 generates the memorandum and if that system is not capable of receiving an
			 entry of the identity of any person other than the responsible associated
			 person; in that circumstance, the broker-dealer shall produce upon request by
			 the director a separate record which identifies each other person. Orders
			 entered pursuant to the exercise of discretionary power by such broker-dealer,
			 or any employee thereof, shall be so designated. The term "Instruction" shall
			 include instructions between partners and employees of a broker-dealer. The
			 term "Time of Entry" shall mean the time when such broker-dealer transmits the
			 order or instruction for execution;
(g) A memorandum of each purchase and 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-dealer, a memorandum of each
			 order received, showing the time of receipt, the terms and conditions of the
			 order and of any modification thereof, the account in which it was entered, the
			 identity of each associated person, if any, responsible for the account, the
			 identity of any other person who entered or accepted the order on behalf of the
			 customer or, if a customer entered the order on an electronic system, a
			 notation of that entry. The memorandum need not show the identity of any person
			 other than the associated person responsible for the account who may have
			 entered or accepted the order if the order is entered into an electronic system
			 that generates the memorandum and if that system is not capable of receiving an
			 entry of the identity of any person other than the responsible associated
			 person; in that circumstance, the broker-dealer shall produce upon request by
			 the director a separate record which identifies each other person. An order
			 with a customer other than a broker-dealer entered pursuant to the exercise of
			 discretionary authority by the broker-dealer, or associated person thereof,
			 shall be so designated;
(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
			 account 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 that, in the case of a joint account or an
			 account of a corporation, 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 in which such broker-dealer has any direct or
			 indirect interest or which 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, and a
			 record of the computation of aggregate indebtedness and net capital, as of the
			 trial balance date;
(l) A
			 questionnaire or application for employment executed by each partner, officer,
			 director, branch manager, or any employee, except any person associated with a
			 broker-dealer whose functions are solely clerical or ministerial, which
			 questionnaire or application shall be approved in writing by an authorized
			 representative of such broker-dealer and shall contain at least the following
			 information with respect to such person:
(A)
			 The associated person's name, address, Social Security number, date of birth
			 and the starting date of the associated person's employment or other
			 association with the broker-dealer;
(B) A complete consecutive statement of all
			 the associated person's business connections for at least the preceding ten
			 years, including whether the employment was part-time or full-time;
(C) A record of any denial of membership or
			 registration, and of any disciplinary action taken, or sanction imposed upon
			 the associated person by any federal or state agency, or by any national
			 securities exchange or national securities association, including any finding
			 that the associated person was a cause of any disciplinary action or had
			 violated any law;
(D) A record of
			 any denial, suspension, expulsion or revocation of membership, or registration
			 of any broker-dealer with which the associated person was associated in any
			 capacity when such action was taken;
(E) A record of any permanent or temporary
			 injunction entered against the associated person or any broker-dealer with
			 which the associated person was associated in any capacity at the time such
			 injunction was entered;
(F) A
			 record of any arrest or indictment for any felony, or any misdemeanor
			 pertaining to securities, commodities, banking, insurance or real estate
			 (including, but not limited to, acting or being associated with a
			 broker-dealer, investment company, investment adviser, futures sponsor, bank,
			 or savings and loan association), fraud, false statements or omissions,
			 wrongful taking of property or bribery, forgery, counterfeiting or extortion,
			 and the disposition of the foregoing;
(G) A record of any other name or names by
			 which the associated person has been known or which the associated person has
			 used; provided, however, that if such associated person has been registered as
			 a registered representative of such broker-dealer, or the associated person's
			 employment has been approved by, the Financial Industry Regulatory Authority,
			 the American Stock Exchange LLC, the NASDAQ OMX BX, the Chicago Stock Exchange,
			 Inc., the New York Stock Exchange, Inc., the NASDAQ OMX PHLX, LLC, the Chicago
			 Board Options Exchange, Inc., the National Stock Exchange, Inc. or the
			 International Securities Exchange, then retention of a full, correct, and
			 complete copy of any and all applications for such registration or approval
			 shall be deemed to satisfy the requirements of section (1) of this
			 rule;
(m) Fingerprint
			 records together with any information received from the United States Attorney
			 General or its designee for every person required to be fingerprinted under the
			 Securities Exchange Act of 1934;
(n) A record as to each associated person of
			 each written customer complaint received by the broker-dealer concerning that
			 associated person. The record shall include the complainant's name, address,
			 and account number; the date the complaint was received; the name of any other
			 associated person identified in the complaint; a description of the nature of
			 the complaint; and the disposition of the complaint. Instead of the record, a
			 broker-dealer may maintain a copy of each original complaint in a separate file
			 by the associated person named in the complaint along with a record of the
			 disposition of the complaint;
(o) A
			 record listing every associated person of the broker-dealer which shows, for
			 each associated person, every office of the broker-dealer where the associated
			 person regularly conducts the business of handling funds or securities or
			 effecting any transactions in, or inducing or attempting to induce the purchase
			 or sale of any security for the broker-dealer, and the Central Registration
			 Depository number, if any, and every internal identification number or code
			 assigned to that person by the broker-dealer;
(p) A record as to each associated person
			 listing each purchase and sale of a security attributable, for compensation
			 purposes, to that associated person. The record shall include the amount of
			 compensation if monetary and a description of the compensation if non-monetary.
			 In lieu of making this record, a broker-dealer may elect to produce the require
			 information promptly upon request of the director;
(q) A record of all agreements pertaining to
			 the relationship between each associated person and the broker-dealer including
			 a summary of each associated person's compensation arrangement or plan with the
			 broker-dealer, including commission and concession schedules and, to the extent
			 that compensation is based on factors other than remuneration per trade, the
			 method by which the compensation is determined;
(r) A record, which need not be separate from
			 the advertisements, sales literature, or communications, documenting that the
			 broker-dealer has complied with, or adopted policies and procedures reasonably
			 designed to establish compliance with, applicable federal requirements and
			 rules of a self-regulatory organization of which the broker-dealer is a member
			 that require advertisements, sales literature, or any other communications with
			 the public by a broker-dealer or its associated persons be approved by a
			 principal;
(s) A record for each
			 office listing, by name or title, each person at that office who, without
			 delay, can explain the types of records the firm maintains at that office and
			 the information contained in those records;
(t) A record listing each principal of the
			 broker-dealer responsible for establishing policies and procedures that are
			 reasonably designed to ensure compliance with any applicable federal
			 requirements or rules of a self-regulatory organization of which the
			 broker-dealer is a member that require acceptance or approval of a record by a
			 principal.
(u) The following record
			 regarding any internal broker-dealer system of which such broker-dealer is the
			 sponsor:
(A) A record of the broker-dealer's
			 customers that have access to the system (identifying any affiliations between
			 such customers and the broker-dealer);
(B) Daily summaries of trading in the system,
			 including securities for which transactions have been executed through use of
			 such system and transaction volume (separately stated for trading occurring
			 during hours when consolidated trade reporting facilities are and are not in
			 operation); and
(C) Time-sequenced
			 records of each transaction effected through the system, including date and
			 time executed, price, size, security traded, counterparty identification
			 information, and method of execution (if the system allows alternative means or
			 locations for execution, such as routing to another market, matching with limit
			 orders, or executing against the quotations of the broker-dealer sponsoring the
			 system).