Standard V(C) Record Retention states that “In the absence of regulatory guidance or firm policies, CFA Institute recommends maintaining records for at least seven years.”
Basic logic implies that even if there is regulatory guidance which requires, let’s say 5 years of record retention, 7 year recommended by Standard V(C) is applied because we established at the beginning of the ethics that “…If applicable law is stricter than the requirements of the Code and Standards, members and candidates must adhere to applicable law; otherwise, they must adhere to the Code and Standards” Standard I: Professionalism
However, it is evident from CFA practice tests that, stance of CFA on this issue is to ignore requirements of Standard I: Professionalism regarding application of stricter rule.
But what is the reason that we do not apply stricter term? Is it because “7 years” is only recommendation? I really can’t get it.