April 2018 — Question 78
How long must a Broker retain a revoked Powers of Attorney to be retained by a broker?
- AFor 5 years after the date of revocation✓ CBP's answer
- BFor 3 years after the date the client ceases to be an active client
- CUntil client advises no longer needed
- D12 months after the last entry the broker prepared on behalf of client
- EAs long as broker is in business
Why this answer
Under the broker recordkeeping rules as tested, powers of attorney must be kept until revoked, and once revoked, the power of attorney and the letter of revocation must be retained for five years after the date of revocation, or five years after the client ceases to be an active client, whichever period is later. That makes option A the keyed answer. Option B tempts because the active-client concept genuinely appears in the same rule, but it pairs that concept with a three-year period the regulation does not use; the retention periods for these broker records consistently run five years, not three. Watch for: Pairing the genuine active-client concept with a three-year period the regulation does not use.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2018 examination.
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