FINRA Rule 2231 — Customer Account Statements

Overview

FINRA Rule 2231 requires broker-dealers to send account statements to customers at least quarterly. Each statement summarizes the customer's account positions, money balances, and transaction activity. The statements give customers regular visibility into their account status, so they can identify any inaccuracies or unauthorized activity.

Amendments that took effect on January 1, 2024, announced in Regulatory Notice 23-02, added eight supplementary materials. They cover sending statements to other parties, electronic delivery, held mail, what the front of the statement must show, assets held elsewhere, third-party logos, and summary statements, and they remind firms of their Rule 4311 obligations.

Official citation: FINRA Rule 2231

Who It Applies To

Rule 2231 applies to all FINRA member firms that carry customer accounts. Introducing firms that clear through a carrying broker rely on it for statements: Rule 4311 assigns preparing and sending them to the carrying firm unless FINRA approves otherwise in writing.

Key Requirements

Quarterly delivery: Account statements must be sent to customers at least once per calendar quarter.
Required content: Statements must include securities positions, money balances, account activity during the period, and descriptions of all securities held.
Inaccuracy notice: Each statement must include a prominent notice instructing customers to report any inaccuracies to the firm.
DVP/RVP accounts: Quarterly statements aren't required for an account carried solely for delivery-versus-payment or receive-versus-payment transactions that has no securities or money positions at quarter-end, if the customer consents in writing. The firm must still send a statement promptly on request.
Electronic delivery: Firms may deliver statements electronically, subject to the SEC's standards for electronic delivery (Supplementary Material .03).

Where Loffa Fits

Quarterly Broker Statement (QBS)

What QBS covers: Quarterly Broker Statement is named for the Rule 17a-13 quarterly securities count. It handles the (b)(3) verification of positions open more than 30 days and the (b)(5) recording of differences. It doesn't produce Rule 2231 customer account statements. See the Rule 17a-13 guide.

Recent Updates

January 1, 2024: Eight new supplementary materials, announced in Regulatory Notice 23-02, took effect. Among them, .05 requires the front of the statement to show the introducing and carrying firms, their customer service contacts, the carrying firm's SIPC membership, and opening and closing balances.
Externally held assets and summary statements: Supplementary Material .06 requires assets held elsewhere to be shown separately, labeled as a courtesy, and flagged as possibly not covered by SIPC. Supplementary Material .08 sets conditions for summary statements that combine accounts from more than one entity.