Recored retention

CFA Level III Portfolio Management
#1

From CFAI: (page 181)

"Local Requirements

Local regulators often impose requirements on members, candidates, and their

firms related to record retention that must be followed. Firms may also implement

policies detailing the applicable time frame for retaining research and client

communication records. Fulfilling such regulatory and firm requirements satisfies

the requirements of Standard V©. In the absence of regulatory guidance or firm

policies, CFA Institute recommends maintaining records for at least seven years."

If local law says that 5.5 years of record retention is enough, would it be violation of CFAI standards, if some one has records for 6 years ? Remember , we have to go for more stricter of both. No ?

#2

You said so yourself, “fulfilling such regulatory and firm requirements satisfies the requirements of Standard V©”

In this case, you need not choose the stricter of both. As long as you satisfy regulatory and firm requirements, even though those are less than seven years, you satisfy V©.

#3

I wish it was as simple as that (in spirit).

So basically if a firm decides for some cost-cutting reason that we need to keep records for 7 days only, then would it be in accordance with CFAI ? Becuase technically they DO have a “firm requirement” and satisfying it should be sufficient for standard V.

#4

If local legislation says 7 day record retention is acceptable, then yes. It’s as simple as that

#5

In an absense of local policies (would pretty much never happen), CFA SUGGESTS 7 years, but that is also not a requirement I believe. Otherwise, just meet stricter of local / firm requirements

#6

I read that question in one of the older exams and they argued that 7 years is correct…