Finra Exam SIE Topic 2 Question 6 Discussion

Actual exam question for Finra's SIE exam

Question #: 6
Topic #: 2

[All SIE Questions]

Which of the following responses best describes how member firms are required to retain electronic correspondence and internal communications of associated persons?

AIn hard copy

BOn the firm's server

CIn the firm's cloud storage

DIn a non-rewriteable format

Show Suggested Answer

Suggested Answer: D

FINRA Rule 4511 requires member firms to retain records, including electronic communications, in a non-rewriteable, non-erasable format (often referred to as WORM: Write Once, Read Many). This ensures that records cannot be altered or deleted once stored.

D is correct because firms must store records in a tamper-proof format.

A, B, and C are incorrect because these formats do not guarantee compliance with the tamper-proof requirements set forth by FINRA and the SEC.

by Ilene at Feb 06, 2025, 08:59 PM

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Tegan

2 months ago

D is the winner! Non-rewriteable format ensures no one can tamper with the records. Can't fool the compliance police!

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Misty

20 days ago

D) In a non-rewriteable format

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Agustin

22 days ago

C) In the firm's cloud storage

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Shelia

25 days ago

B) On the firm's server

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Raul

26 days ago

A) In hard copy

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Alpha

2 months ago

Option C. Cloud storage is the way to go these days. Plus, it's easier to access from anywhere.

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Keneth

29 days ago

I think it's important to have electronic correspondence stored securely, so cloud storage makes sense.

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Marnie

1 months ago

I agree, cloud storage is definitely convenient for accessing documents.

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Tyra

2 months ago

Hmm, I'm torn between B and D. Maybe they should just use a pigeon to deliver the communications - that's non-rewriteable!

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Sheridan

1 months ago

But D is more secure, it can't be altered once saved. Maybe a combination of both would be best.

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Mabel

1 months ago

I think B is the best option. It's easier to access on the firm's server.

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Fausto

2 months ago

I'm not sure, but I think it could also be B) On the firm's server, as that would make it easily accessible for compliance checks.

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Leigha

2 months ago

I agree with Fairy, it makes sense to retain electronic correspondence in a non-rewriteable format for security and compliance purposes.

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Douglass

2 months ago

Definitely B. Storing on the firm's server makes the most sense for accessibility and security.

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Leatha

2 months ago

I think option D is the correct answer. Non-rewriteable format ensures the integrity of the communications.

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Vallie

1 months ago

I believe option A in hard copy is outdated and less efficient compared to digital storage options.

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Raylene

1 months ago

I prefer option C in the firm's cloud storage for easy access and backup.

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Marilynn

2 months ago

I think option B on the firm's server is also a secure way to retain communications.

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Xenia

2 months ago

I agree, option D is the best choice for retaining electronic correspondence.

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Fairy

3 months ago

I think the answer is D) In a non-rewriteable format.

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