Recordkeeping Rules - Confirmation of Transactions and Account Statements

Confirmation of Transactions

SEC Rule 10b-10
This rule requires broker-dealers to provide the following information to customers before or at the completion of a securities transaction. The following must be disclosed in a written notification:

  • The date and time of the transaction (or the fact that the time of the transaction will be furnished upon written request to such customer) and the identity, price, and number of shares or units (or principal amount) of such security purchased or sold by such customer

  • Whether the broker or dealer is acting as agent for such customer, as agent for some other person, as agent for both such customer and some other person, or as principal for its own account; and if the broker or dealer is acting as principal and whether it is a market maker in the security

  • The amount of any remuneration received or to be received by the broker from such customer in connection with the transaction

The broker-dealer shall give or send information requested pursuant to this rule within five business days of receipt of the request. However, in the case of information pertaining to a transaction effected more than 30 days prior to receipt of the request, the information shall be given or sent to the customer within 15 business days.

NASD (now known as FINRA) Rule 2230: Confirmations
This rule requires a broker-dealer at or before the completion of each transaction with a customer, to give or send to such customer written notification disclosing:

  1. whether such member is acting as a broker for such customer, as a dealer for his or her own account, as a broker for some other person, or as a broker for both such customer and some other person; and

  2. in any case in which such member is acting as a broker for such customer or for both such customer and some other person, either the name of the person from whom the security was purchased or to whom it was sold for such customer and the date and time when such transaction took place or the fact that such information will be furnished upon the request of such customer, and the source and amount of any commission or other remuneration received or to be received by such member in connection with the transaction.

Account Statements

NASD (now known as FINRA) Rule 2340: Customer Account Statements
This rulerequires broker-dealers to provide customers with a statement at least quarterly, although if any activity has occurred in the account, the usual practice is to provide a statement for the month in which the activity has occurred. The account statement contains the following information:

  • Cash balances
  • All security positions
  • Activity in the account since the last statement
Registration and Regulation of Brokers and Dealers
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