SIE practice questioneasyAccount Statements
How frequently must a broker-dealer send account statements to customers with account activity?
- AAnnually
- BMonthly for active accounts; quarterly for inactive accounts✓ Correct answer
- CDaily
- DWeekly
Explanation
Why B — Monthly for active accounts; quarterly for inactive accounts
FINRA Rule 2231 requires broker-dealers to send account statements at least quarterly. However, for accounts that have had activity (trading, dividends, interest) during a month, a monthly statement must be sent. Inactive accounts may receive quarterly statements. Statements must include securities positions, cash balances, and account activity. This regular reporting helps customers monitor their accounts and detect any errors or unauthorized activity.
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