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Keeping of Records Rules


Q1 : Can intermediaries or their associated entities keep copies of non-trade related documents, such as invoice or bank statement, instead of the originals?


We would generally expect intermediaries and their associated entities to keep the original instead of copies of the relevant records, whether they are trade-related or non-trade related.

Record Retention Period

Q2 : In the case where daily compliance checking is performed by an intermediary, how long should the underlying records be kept?


If such records are necessary to demonstrate compliance with the provisions of the Client Money Rules and Client Securities Rules, as specified under sections 3(1)(a)(vi) and 4(1)(a)(v) of the respective Rules; or to demonstrate that it has systems of control in place to ensure such compliance, they are required to be kept for 7 years under the Rules.

For other records of daily compliance checking, the retention period is not prescribed in the Rules. However, as a good practice of internal control, intermediaries are expected to retain those records for a reasonable period of time in order to provide a sufficient audit trail to facilitate both internal and external audits. In particular, if such records are important compliance records necessary to demonstrate compliance with rules and regulations applicable to the firm as required under para.12.1 of the Code of Conduct, 7 years are generally recommended. 

Section reference: 10

Last update: 28 Jul 2003

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