---
kind: "section"
citation: "17 C.F.R. § 404.2"
title: "17"
number: "404.2"
heading: "Records to be made and kept current by registered government securities brokers and dealers; records of non-resident registered government securities brokers and dealers."
url: "https://uscodex.org/cfr/17/404.2"
---

# §404.2. Records to be made and kept current by registered government securities brokers and dealers; records of non-resident registered government securities brokers and dealers.

- (a) Every registered government securities broker or dealer shall comply with the requirements of [§ 240.17a-3](/cfr/17/240.17a-3.md) of this title (SEC [Rule 17a-3](/cfr/17/17a-3.md)), with the following modifications:
  - (1) References to “broker or dealer” and “broker or dealer registered pursuant to Section 15 of the Act” include registered government securities brokers or dealers.
  - (2) References to §§ [240.17a-3](/cfr/17/240.17a-3.md), [240.17a-4](/cfr/17/240.17a-4.md), [240.17a-5](/cfr/17/240.17a-5.md), and [240.17a-13](/cfr/17/240.17a-13.md) mean such sections as modified by this part and [part 405](/cfr/17/part405.md) of this chapter.
  - (3)
    - (i) Except in the case of a government securities interdealer broker who is subject to the financial responsibility rules of [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter and a registered government securities broker or dealer that is a futures commission merchant registered with the CFTC, paragraph 240.17a-3(a)(1l) is modified to read as follows:
    - (ii) For a government securities interdealer broker who is subject to the financial responsibility rules of [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter, references to [§ 240.15c3-1](/cfr/17/240.15c3-1.md) include modifications contained in [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter.
  - (4) Paragraph 240.17a-3(b)(1) is modified to read as follows:
  - (5) The undertaking in [§ 240.17a-3(b)(2)](/cfr/17/240.17a-3.md?p=b-2) is modified to read as follows:
  - (6) [Section 240.17a-3(c)](/cfr/17/240.17a-3.md?p=c) is modified to read as follows:
- (b) Every registered government securities broker or dealer shall comply with the requirements of [§ 240.17h-1T](/cfr/17/240.17h-1T.md) of this title (SEC [Rule 17h-1T](/cfr/17/17h-1T.md)), with the following modifications:
  - (1) For the purposes of this section, references to “broker or dealer” and “broker or dealer registered with the Commission pursuant to Section 15 of the Act” mean registered government securities brokers or dealers.
  - (2) For the purposes of this section, references to §§ [240.17h-1T](/cfr/17/240.17h-1T.md) and [240.17h-2T](/cfr/17/240.17h-2T.md) of this title mean those sections as modified by §§ [404.2(b)](#b) and [405.5](/cfr/17/405.5.md), respectively.
  - (3) For the purposes of this section, “associated person” has the meaning set out in Section 3(a)(18) of the Act ([15 U.S.C. 78c(a)(18)](/usc/15/78c.md?p=a-18)), except that natural persons are excluded.
  - (4) Paragraphs 240.17h-1T(a)(1)(iii) through (vi) of this title are modified to read as follows:
  - (5) Paragraphs 240.17h-1T(a)(3) and (a)(4) of this title are modified to read as follows:
  - (6) Paragraph 240.17h-1T(b) of this title is modified to read as follows:
  - (7) Paragraph 240.17h-1T(c) of this title is modified to read as follows:
  - (8) Paragraph 240.17h-1T(d) of this title is modified to read as follows:
  - (9) Paragraph 240.17h-1T(g) of this title is modified to read as follows:
- (c)
  - (1) Every non-resident government securities broker or dealer registered or applying for registration pursuant to Section 15C of the Act shall comply with [§ 240.17a-7](/cfr/17/240.17a-7.md) of this title, provided that:
    - (i) For the purposes of this section, references to “broker or dealer” and “broker or dealer registered or applying for registration pursuant to Section 15 of the Act” mean registered government securities brokers or dealers; and
    - (ii) For the purposes of this section, references to “any rule or regulation of the Commission” and “any rule or regulation of the Securities and Exchange Commission” mean any rule or regulation of the Secretary.
  - (2) For the purposes of this section, the term “non-resident government securities broker or dealer” means:
    - (i) In the case of an individual, one who resides in or has his principal place of business in any place not subject to the jurisdiction of the United States;
    - (ii) In the case of a corporation, one incorporated in or having its principal place of business in any place not subject to the jurisdiction of the United States; and
    - (iii) In the case of a partnership or other unincorporated organization or association, one having its principal place of business in any place not subject to the jurisdiction of the United States.
- (d) **Effective date.** [Paragraph (a)](#a) of this section shall be effective on October 31, 1987, except that registered government securities brokers and dealers are required to maintain the records specified in [§ 240.17a-3(a)](/cfr/17/240.17a-3.md?p=a) (12), (13), (14) and (15) beginning July 25, 1987.

## Notes

### Amendments

[52 FR 27952, July 24, 1987, as amended at 60 FR 11026, Mar. 1, 1995; 60 FR 20399, Apr. 26, 1995; 83 FR 66616, Dec. 27, 2018]

### Authority

Authority: 15 U.S.C. 78o-5 (b)(1)(B), (b)(1)(C), (b)(2), (b)(4).

### Source

Source: 52 FR 27952, July 24, 1987, unless otherwise noted.

### Amendments

[52 FR 27952, July 24, 1987, as amended at 60 FR 11026, Mar. 1, 1995; 60 FR 20399, Apr. 26, 1995; 83 FR 66616, Dec. 27, 2018]