Certain requirements apply to the retention of email communications by Investment Advisers under the Investment Advisers Act of 1940. Which statement is true with regard to such e-mail communication regulations?[A] All e-mails, business related or not must be maintained as correspondence[B] Business related emails are required to be maintained as correspondence[C] Retention of email communications are kept at the discretion of the investment advisor[D] Emails are not required to be preserved

B. Business Related Emails are required to be maintained as correspondence

Explanation:

In the Investment Advisers Act of 1940, Rule 204-2, Advisers are required by regulation to keep various kinds of books records, therefore any email that falls into one of such kinds should be kept the way books and other physical records will be kept.

For instance, the Act of 1940 states that all originals of communications should be kept, these include those sent to and received from brokers, members, and dealers relating to the business.

It futher states that firms should maintain accounts, books, memoranda and correspondence that relate to the business.

As such, since email communications by Investment Advisers are termed as business related correspondence, they fall under the category of correspondence records that should be mainted by nvestement Advisers.