Which type of records must investment advisers maintain?

Investment advisers are required to maintain a comprehensive set of records that reflect their business activities and interactions with clients. This includes financial records, which provide insights into the adviser’s financial condition and help ensure transparency in transactions. Client communications are also crucial, as they document the relationship between the adviser and clients, including investment recommendations and performance results.

In addition, compliance documents play a significant role in ensuring that investment advisers adhere to regulatory requirements. These documents can include policies and procedures, training materials, and compliance audits. Lastly, records of transactions, such as trade confirmations and account statements, are necessary to track investment activities and ensure accuracy in reporting.

The inclusion of all these elements—financial records, client communications, compliance documents, and records of transactions—ensures that investment advisers can provide oversight for their operations, comply with exam requirements, and protect client interests effectively. This comprehensive approach not only aids in legal compliance but also promotes ethical business practices and enhances client trust.