Updated Wednesday, September 2, 2015 as of 1:04 PM ET

Record-Keeping After Client Accounts Transfer

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

Get access to this article and thousands more...

All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Already a subscriber? Log in here