What record must an investment adviser maintain regarding communications sent to individuals?

What record must an investment adviser maintain regarding communications sent to individuals?

• A. The names and addresses of any person who has made a complaint
• B. The names and addresses of persons receiving notices, if 10 or fewer
• C. A log of all financial transactions completed
• D. The names and addresses of all clients receiving annual statements

Answer: (B)

The requirement for maintaining a record of the names and addresses of individuals receiving notices applies specifically to investment advisers who communicate with a limited number of clients. According to regulatory standards, if an investment adviser sends material communications or notices to ten or fewer individuals, they are obligated to maintain a record of those recipients. This is crucial for demonstrating compliance with regulations and ensuring that advisers can track their communications effectively for transparency and accountability purposes. Maintaining this log helps to safeguard client interests and ensures that advisers can provide appropriate responses if questions or disputes arise regarding the communications sent. This practice is part of a broader regulatory framework designed to promote fair dealing and protect consumers in the investment advisory industry.

The requirement for maintaining a record of the names and addresses of individuals receiving notices applies specifically to investment advisers who communicate with a limited number of clients. According to regulatory standards, if an investment adviser sends material communications or notices to ten or fewer individuals, they are obligated to maintain a record of those recipients. This is crucial for demonstrating compliance with regulations and ensuring that advisers can track their communications effectively for transparency and accountability purposes.

Maintaining this log helps to safeguard client interests and ensures that advisers can provide appropriate responses if questions or disputes arise regarding the communications sent. This practice is part of a broader regulatory framework designed to promote fair dealing and protect consumers in the investment advisory industry.