What should a principal broker advise when an administrative assistant wants to move older files to storage?

The principal broker should advise converting files to electronic format before destruction because maintaining an accurate and accessible digital record promotes efficient future retrieval and compliance with regulatory requirements. When files are converted to electronic format, it allows the brokerage to minimize physical storage space while ensuring that important information is preserved in a format that can be easily accessed and shared. This approach also mitigates risks associated with losing critical records or having to reference outdated materials.

In many jurisdictions, it is also a best practice to retain certain documents for specified periods according to legal and industry standards, and electronic records can satisfy these retention requirements. Therefore, transitioning to electronic format provides a modern solution that aligns with both operational efficiency and compliance.