FOR IMMEDIATE RELEASE                             2001-123


    FINAL RULE AMENDMENTS TO BOOKS AND RECORDS REQUIREMENTS
               FOR BROKERS AND DEALERS UNDER THE
                SECURITIES EXCHANGE ACT OF 1934


     Washington,  DC,  October 25, 2001 – The  Securities  and
Exchange Commission today adopted final rule amendments to the
broker-dealer books and records rules (Rule 17a-3 and Rule 17a-
4)  under  the Securities Exchange Act of 1934. The amendments
clarify and expand recordkeeping requirements including  those
for  purchase and sale documents, customer records, associated
person  records, customer complaints, communications with  the
public,   and   supervisory  procedures.   In  addition,   the
amendments  require  broker-dealers to  maintain  or  promptly
produce  certain records at each office to which those records
relate.  These amendments are specifically designed to  assist
securities   regulators   when   conducting   sales   practice
examinations  of broker-dealers, particularly examinations  of
local offices.

       The   amended  rules  contain  the  following   general
provisions, among others:

     ·    A broker-dealer must create a record containing certain
       minimum information as to each customer and furnish that
       information to the customer on a periodic basis.  A broker-
       dealer does not have this requirement for an account for
       which the firm is not required (under any federal or
       SRO rules) to make a suitability determination.
     ·    A broker-dealer must create and maintain certain records
       for each office of the broker-dealer, and these records
       must either be maintained at that office or delivered to
       that office promptly upon request.
     ·    A broker-dealer must include additional information on
       each order ticket, including the identity of the associated
       person, if any, responsible for the account and any other
       person who entered or accepted the order on behalf of the
       customer.

     The final rules will become effective 18 months after the
date of publication in the Federal Register.



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