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Question

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

Under FINRA rules, a registered broker-dealer is required to deliver an account statement to a customer every month, regardless of whether any trade activity or funds movement occurred in the account during that month.

Answer: Answer

Answer

The statement is False. Broker-dealers must deliver customer account statements at least quarterly when an account is inactive, and monthly only during months with account activity.
The statement is false because FINRA rules permit broker-dealers to send statements on a quarterly schedule for inactive accounts. Monthly delivery is only mandated during months in which trade activity or cash/security transfers occur.

Step-by-Step Solution

1
Identify FINRA rules regarding customer account statement delivery frequencies.
FINRA rules require monthly statements during any month in which activity (such as buys, sells, interest, or dividends) occurs in the account.
Customers must be kept promptly informed of transactions affecting their balances.
2
Determine statement delivery requirements for accounts without monthly activity.
If there is no activity in the account, statements must be delivered at least quarterly.
A mandatory monthly statement is not required for inactive accounts under standard FINRA rules.

Key Concept

Customer Account Statement Delivery Frequency
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Topics

Account Statements, Privacy Protection, and Regulation S-P