For how many years must brokers keep their records?

Brokers are required to keep their records for a period of five years. This duration is established to ensure that there is a sufficient timeframe for regulatory oversight and to allow for any potential reviews or audits by state authorities. Retaining records for five years helps preserve documentation related to policies, transactions, and communications with clients, which is essential for compliance with legal and regulatory requirements. This period also aligns with the common practices seen in various jurisdictions for the retention of insurance and financial records. Keeping records for five years facilitates transparency and accountability in the brokerage industry.