Question

Difficulty: EasyAccount Statements, Privacy Protection, and Regulation S-P

Under FINRA rules governing customer account disclosures, a broker-dealer must deliver an account statement to a customer at least quarterly, but must send a statement monthly for any month in which activity occurs in the account.

Answer: Answer

Answer

True

Under FINRA rules, broker-dealers must send account statements at least quarterly to customers, but the delivery frequency increases to monthly whenever trading or other account activity occurs during that month.

Step-by-Step Solution

1

Identify the base statement frequency requirement for inactive customer accounts.

Broker-dealers are required to send statements at least quarterly even when there is no activity.

To keep customers regularly informed about their holdings and account balances.

2

Identify the delivery trigger for monthly account statements.

Any account activity during a calendar month triggers a requirement to deliver a statement for that specific month.

FINRA rules demand timely disclosure following account transactions or interest/dividend postings.

Key Concept

Customer Account Statement Delivery Frequency Rules

Rate this question

Topics

Account Statements, Privacy Protection, and Regulation S-P