How should CFPs handle records regarding client data, according to policy?

• A. Delete records after 30 days.
• B. Copy records only for internal use.
• C. Retain records indefinitely as needed.
• D. Retain records per policy and be able to produce on request.

Answer: (D)

Maintaining client data properly centers on following the firm’s retention policy and being able to provide records when asked. This balances accountability, transparency, and confidentiality with regulatory and client rights. Keeping records only for a short period, or copying them only for internal use, doesn’t meet those obligations. Deleting records after a fixed short window can prevent timely responses to client or regulator requests and may fail to satisfy applicable retention rules. Retaining indefinitely isn’t required and can create unnecessary privacy and cost concerns. The correct approach is to retain records per policy and be able to produce them on request, ensuring you can substantiate past advice and actions when needed.