Sec
Under SEC recordkeeping rules, which storage medium is generally NOT acceptable for books and records?
Records must be non-rewritable, non-erasable (WORM). Prevents tampering.
Complete Analysis & Legal Rationale
Rewritable media is generally not acceptable because records could be altered without detection. SEC Rule 17a-4 requires non-rewritable, non-erasable storage (WORM technology) to ensure record integrity.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
WORM technology is specifically designed for compliant record storage.
Matches the verified teaching point in the explanation.
Microfilm is an acceptable storage medium for records.
Magnetic tape with appropriate controls can be acceptable.
Official Standard: Primary source referenced in the explanation (SEC Rule 17a-4). Verify current text before launch.