Securities Trader Representative (Series 57) Practice Exam

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Which of the following entities are required to comply with SEC rules regarding record maintenance?

Broker-dealers
Investment advisers
Insurance companies
Financial planners

The correct answer is: Broker-dealers

The requirement for record maintenance compliance with SEC rules primarily applies to broker-dealers due to their regulatory obligations as registered entities. Under the Securities Exchange Act of 1934, broker-dealers are mandated to maintain accurate and detailed records of their transactions, communications, and interactions with clients to ensure market integrity and transparency. This includes preserving records related to customer accounts, trading activity, and compliance with applicable laws. While investment advisers also have record maintenance requirements, they fall under the jurisdiction of the Investment Advisers Act of 1940 and the rules set forth by the SEC specifically for them. Insurance companies and financial planners do not have the same level of SEC oversight when it comes to record maintenance as broker-dealers do. Thus, the significance of broker-dealers being specifically required to adhere to SEC rules makes them the correct choice in this context.