Updated Monday, July 28, 2014 as of 10:32 AM ET
Practice - Regulatory/Compliance
Record-Keeping After Client Accounts Transfer
Thursday, November 1, 2012
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I'm looking to buy a small broker-dealer. The seller informed me that the clients have all transferred their accounts out (which is fine with me). However, it's my understanding that I have to retain the client information. The seller says that since the clients have closed their accounts, and since the firm would be under new ownership, there's no reason for me to have the client information since the clients can't sue me for any wrongdoing that allegedly occurred when he owned the company. He was also concerned with violating the privacy rules. Can you shed any light on this?

D.J., Virginia

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