Books and Records Requirements for Brokers and Dealers Under the Securities Exchange Act of 1934

The Securities and Exchange Commission is reproposing for comment amendments to its broker-dealer books and records rules, Rule 17a-3 and Rule 17a-4, under the Securities Exchange Act of 1934. The original proposal was made in 1996 in response to concerns raised by members of the North American Securities Administrators Association about the adequacy of the Commission's books and records rules as to sales practices. The reproposed amendments incorporate comments received in response to the original proposal. These amendments are designed to clarify and expand recordkeeping requirements with respect to purchase and sale documents, customer records, associated person records, customer complaints, and certain other matters. The reproposed amendments also specify the books and records that broker-dealers would have to make available at their local offices. The reproposed books and records rules are specifically designed to assist securities regulators when conducting sales practice examinations.