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Zorluk: OrtaAccount Statements, Privacy Protection, and Regulation S-P

An investor has held a fully paid retail brokerage account at a FINRA-member firm for several years. Over a period of five consecutive months, the account experiences zero security transactions, cash deposits or withdrawals, dividend credits, or interest payments. Which of the following statements accurately describes the broker-dealer's regulatory requirement for sending account statements to this customer?

  1. The broker-dealer must deliver an account statement to the customer at least quarterly.Cevap
  2. B
    The broker-dealer must continue delivering account statements on a monthly basis regardless of account activity.
  3. C
    The broker-dealer may suspend statement delivery completely until new transaction activity occurs in the account.
  4. D
    The broker-dealer is required to deliver account statements only once per year alongside the annual Regulation S-P privacy notice.

Cevap

The broker-dealer must deliver an account statement to the customer at least quarterly.
FINRA Rule 2231 mandates that registered broker-dealers deliver account statements to customers at least quarterly if the account holds security positions or cash balances. When an account experiences trading or financial activity (or contains penny stocks), statements must be provided monthly for each month in which activity occurred. For inactive accounts, quarterly delivery is the minimum required frequency.

Adım Adım Çözüm

1
Determine the general requirement for account statement delivery under FINRA Rule 2231.
Broker-dealers are required to send statements at least quarterly for any account carrying security positions or funds.
Quarterly statements ensure customers receive regular updates on the status of their assets.
2
Evaluate whether the five-month inactive period triggers monthly delivery.
Because no activity (trades, dividends, interest, or money movement) occurred in those months, monthly delivery is not mandatory.
Monthly statement delivery is specifically required only for months in which account activity takes place or penny stocks are held.

Anahtar Kavram

Customer Account Statement Frequency (FINRA Rule 2231)
Tahmini Süre:1m 0s
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