General Securities Sales Supervisor (Series10) Practice Exam

How long must records of customer complaints be maintained under FINRA rules?

1. A 2 years

2. B 3 years

3. C 4 years

4. D 5 years

The correct answer is: C 4 years

Under FINRA rules, records of customer complaints must be maintained for a period of four years. This requirement falls under the Securities Exchange Act of 1934 and reflects the emphasis on ensuring that firms have adequate documentation of all customer interactions, especially those that could lead to disputes or regulatory scrutiny. The four-year retention period allows for reasonable access to complaints by both the firm and regulatory authorities, ensuring that any patterns or issues can be reviewed adequately over time. While other time frames may apply to different types of records — such as customer account records or transactional information — the specific requirement for customer complaints underscores the importance of tracking customer satisfaction and issues within the financial services industry. Additionally, having a longer retention period helps firms identify any systemic issues that might arise from customer feedback or complaints, enabling them to improve their services and compliance processes.