A RIA (registered investment advisor) places an order to buy some stock for a customer in the customer's account. He has discretion on the account. It is a limit order good for the day. The order is not filled.

Does the RIA have to keep a log of the order?

  • 1
    Is there any reason that the RIA wouldn't do so? Logging everything would seem like the brute force solution to compliance without overthinking it. Certainly, there would be not regulatory penalty for logging a transaction that when push comes to shove didn't have to be logged as a matter of law. Any busy RIA would be logging orders many times a day anyway and would presumably be able to do so very efficiently. It would also document non-neglect of the account, even if not required. Lawyers document non-billable time every day for similar reasons.
    – ohwilleke
    Mar 17 at 5:58
  • The reason for not logging it is that it takes time. Also, in the case I show it is not a big deal to log it. However, suppose the RIA changed the order 6 times during the day. Does each change have to be logged?
    – Bob
    Mar 17 at 21:19


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