For how long must customer information records be kept by a firm that makes recommendations?

• A. 3 years
• B. 6 months
• C. 1 year
• D. 2 years

Answer: (A)

When a firm provides recommendations, it needs a dependable record of what information was considered and what advice was given. Keeping these customer information records for a minimum period ensures there’s a clear trail to review if a customer questions the advice or a regulatory inquiry arises. The standard minimum retention time for this scenario is three years from the date of the advice. This period strikes a balance between having enough history to support any future questions and keeping records manageable. If the relationship with the customer continues or there are ongoing dealings, longer retention may apply according to policy and regulation, but three years is the basic baseline.