71Accounts to be kept by dealers

##### 71 Accounts to be kept by dealers (1) A dealer shall: (a) keep such accounting records as correctly record and explain the transactions and financial position of the business of dealing in securities carried on by him; (b) keep his accounting records in such a manner as will enable true and fair profit and loss accounts and balance sheets to be prepared from time to time; and (c) keep his accounting records in such a manner as will enable profit and loss accounts and balance sheets of the business of dealing in securities carried on by him to be conveniently and properly audited. Penalty: $2,500 or imprisonment for 6 months, or both. (2) A dealer shall be deemed not to have complied with subsection (1) in relation to records unless those records: (a) are kept in writing in the English language or in such a manner as will enable them to be readily accessible and readily converted into writing in the English language; (b) are kept in sufficient detail to show particulars of: (i) all moneys received or paid by the dealer, including moneys paid to, or disbursed from, a trust account; (ii) all purchases and sales of securities made by the dealer, the charges and credits arising from them, and the names of the buyer and seller, respectively, of each of those securities; (iii) all income received from commissions, interest, and other sources, and all expenses, commissions, and interest paid, by the dealer; (iv) all the assets and liabilities (including contingent liabilities) of the dealer; (v) all securities that are the property of the dealer, showing by whom the securities, or the documents of title to the securities, are held and, where they are held by some other person, whether or not they are held as security against loans or advances; (vi) all securities that are not the property of the dealer and for which the dealer or any nominee controlled by the dealer is accountable, showing by whom, and for whom, the securities or the documents of title to the securities are held and the extent to which they are either held for safe custody or deposited with a third party as security for loans or advances made to the dealer; (vii) all purchases and sales of options made by the dealer and all fees (being option moneys) arising from them; (viii) all arbitrage transactions entered into by the dealer; and (ix) all underwriting transactions entered into by the dealer; (c) are kept in sufficient detail to show separately particulars of every transaction by the dealer; (d) specify the day on which or the period during which each transaction by the dealer took place; and (e) contain copies of acknowledgments of the receipt of securities or of documents of title to securities received by the dealer from clients for sale or safe custody clearly showing the name or names in which the particular securities are registered. (3) Without affecting the operation of subsection (2), a dealer shall keep records in sufficient detail to show separately particulars of all transactions by the dealer with, or for the account of: (a) clients of the dealer, excluding, where the dealer carries on business in partnership, the partners of the firm; (b) the dealer himself, or, where the dealer carries on business in partnership, the partners of the firm; (c) other dealers carrying on business in the Territory; (d) dealers outside the Territory; and (e) employees of the dealer. (4) An entry in the accounting and other records of a dealer required to be kept in accordance with this section, and any matter recorded by a securities exchange in relation to a member pursuant to subsection 136(3), shall be deemed to have been made by, or with the authority of, the dealer or member. (5) Where a record required by this section to be kept is not kept in writing in the English language, the dealer shall, if required to convert the record into writing in the English language by a person who is entitled to examine the record, comply with the requirement within a reasonable time. (6) Notwithstanding any other provision of this section, a dealer shall not be deemed to have failed to keep a record referred to in subsection (1) by reason only that the record is kept as a part of, or in conjunction with, the records relating to any business other than dealing in securities that is carried on by him. (7) If accounting or other records are kept by a dealer at a place outside the Territory, the dealer shall cause to be sent to and kept at a place in the Territory such particulars with respect to the business dealt with in those records as will enable true and fair profit and loss accounts and balance sheets to be prepared.