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Trela Trec RulesTrust_accountsMEDIUM

Under TREC rules, a broker's trust account balance should be reconciled regularly. What is the recommended practice for trust account reconciliation?

Correct Answer

C) Monthly reconciliation of the trust account balance against the broker's transaction records

Under TREC rules, brokers should reconcile their trust accounts monthly. Monthly reconciliation ensures that the account balance matches the total of all client deposits and that any discrepancies are identified and resolved promptly.

Answer Options
A
Annual reconciliation at the end of each fiscal year
B
Reconciliation only when TREC conducts an audit
C
Monthly reconciliation of the trust account balance against the broker's transaction records
D
Reconciliation only when a transaction closes or a client files a complaint

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Related Topics & Key Terms

Key Terms:

trust_accountmonthly_reconciliationrecord_keepingbest_practice
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