Under TREC rules, Broker Lee manages a trust account containing funds from 15 different transactions. During a routine bank reconciliation, Lee discovers that a $2,500 bank error has caused the trust account balance to be lower than the total of all client deposits. Under TREC rules, what is Lee's obligation?
Correct Answer
D) Lee must immediately deposit personal or brokerage funds to cover the shortfall while pursuing the bank error correction, and must maintain complete records of the discrepancy
Under TREC rules, the broker is responsible for ensuring the trust account balance always equals or exceeds the total of all client deposits. Even if a bank error caused the shortfall, the broker must immediately cover the deficiency to protect client funds and then pursue the bank error correction. Complete records of the discrepancy must be maintained.
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