Members and candidates must develop and maintain appropriate records for several reasons:

1. Compliance: Developing and maintaining appropriate records is essential for complying with legal and regulatory requirements. Failure to maintain proper records can result in legal and regulatory penalties.

2. Transparency: Appropriate records help ensure transparency in business dealings. They provide a clear picture of the transactions and activities undertaken by the member or candidate, making it easier to detect any irregularities or potential conflicts of interest.

3. Accountability: Records provide a means of accountability for members and candidates. They help to demonstrate that the member or candidate has acted in accordance with their professional obligations and ethical standards.

4. Risk management: Appropriate records help to manage risks associated with business activities. They provide a record of decisions made, actions taken, and outcomes achieved, which can be used to identify areas of risk and take steps to mitigate them.

5. Professionalism: Developing and maintaining appropriate records is a hallmark of professionalism. It demonstrates a commitment to ethical behavior and a willingness to be held accountable for one's actions.