Under TRESA, who is entitled to the interest earned on money a brokerage holds in its trust account?
Correct Answer
B) The beneficial owner of the money, unless a contract provides otherwise
TRESA s. 27(3) states that, unless otherwise provided by contract, all interest on trust money shall be paid to the beneficial owner of the money. Section 27(2) also requires the brokerage to disclose in writing whether the money is in an interest-bearing account and the interest rate it receives. There is no $10,000 or 30-day threshold.
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