808 KAR 10:320. Broker-dealer books and records requirements.


      RELATES TO: KRS 292.336(1)(a), 17 C.F.R. 240.17a-3, 240.17-a-4, 15 U.S.C. 78q

      STATUTORY AUTHORITY: KRS 292.336(1)(a), 292.500(3)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 292.500(3) authorizes the commissioner to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 292. KRS 292.336(1)(a) requires a registered broker-dealer to make and keep records required by the commissioner. This administrative regulation establishes the recordkeeping requirements for a broker-dealer.


      Section 1. (1) Pursuant to KRS 292.336(1)(a), a broker-dealer shall:

      (a) Meet the recordkeeping requirements established in 15 U.S.C. 78q; and

      (b) Maintain his books and records in accordance with the applicable federal regulations, including 17 C.F.R. 240.17a-3 and 17 C.F.R. 240.17a-4.

      (2) The requirements established in subsection (1) of this section shall apply to a broker-dealer subject to the provisions of KRS Chapter 292.

      (3) The commissioner may upon application for good cause shown relieve a broker-dealer of compliance with the requirements established in subsection (1) of this section if the action is necessary or appropriate in the public interest; or for the protection of an investor. (24 Ky.R. 2264; Am. 25 Ky.R. 95; eff. 6-25-98; TAm 11-7-2012.)