A CFA charterholder owns an asset management firm with offices downtown. To minimize rent expenses, each year the charterholder ships the previous year's research records to a nearby warehouse. There, the reports are digitized and stored in both electronic and hard-copy forms. After five years, all paper copies are destroyed and only electronic copies are retained. Are the charterholder's record-retention procedures in compliance with CFA Institute Standards of Practice?

A. No
B. Yes, because he is only required to retain hard copies for five years.
C. Yes, because he still retains electronic copies of the original documents.

Correct Answer: C

Members must maintain appropriate records in either electronic or hard copy form for a minimum of seven years. The standards do not require on-site storage.