Statements
Every product we’ve discussed so far is bought and sold through brokerage accounts. Broker-dealers maintain these accounts, and investors use them to buy and sell securities. In this unit, you’ll learn about different types of brokerage accounts and the key rules and regulations that apply to them.
Account statements give you a historical record of account activity, the value of the securities you hold, and your overall account balances. Broker-dealers are required to provide customers with a clear, transparent view of their assets.
At a minimum, firms must send account statements to customers quarterly (every three months). However, firms must send statements monthly if a customer holds penny stocks in the account. Statements may also be delivered electronically (such as by email) if the customer requests it.
Firms must send statements consistently by mail unless the investor chooses electronic delivery. Even so, customers can ask the firm to hold their mail, in written instructions that say how long to hold it.
- For up to three months, mail may be held for any reason.
- To hold mail longer than three months, the instructions must also give a legitimate reason (e.g., military deployment, safety, and security-related issues). Convenience is never one.
FINRA’s rule doesn’t limit how often a customer may ask for a hold, but back-to-back holds count together toward the three months. The firm must also tell the customer in writing about other ways to receive or monitor account activity (e.g., by email or on the firm’s website), get the customer’s confirmation that they received it, and check at reasonable intervals that the customer’s instructions still apply.