Broker Wilson discovers that his trust account has a shortfall — the account balance is $3,000 less than the total of all client deposits that should be in the account. Under TREC rules, what is Wilson's obligation?
Correct Answer
B) Wilson must immediately deposit personal funds to cover the shortfall and investigate the cause of the discrepancy
Under TREC rules, a trust account shortfall is a serious matter. The broker must immediately deposit personal or brokerage funds to cover the shortfall and protect client funds, then investigate the cause of the discrepancy. The broker may also need to report the issue to TREC.
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