FINRA Rule 2231 — Customer Account Statements

Overview

FINRA Rule 2231 requires broker-dealers to send account statements to customers at least quarterly, providing a comprehensive summary of their account positions, money balances, and transaction activity. These statements are a critical transparency tool, ensuring customers have regular visibility into their account status and can identify any inaccuracies or unauthorized activity.

The rule was significantly updated in 2024, when FINRA adopted eight new supplementary materials through Regulatory Notice 23-02, enhancing requirements around electronic delivery, content standards, and customer notifications.

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 generally rely on the carrying firm to produce and distribute statements, but remain responsible for ensuring statements are accurate and compliant.

Key Requirements

Quarterly delivery: Account statements must be sent to customers at least once per calendar quarter. Accounts with monthly activity must receive monthly statements.
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.
Penny stock legend: For accounts holding penny stocks, additional disclosures are required on the statement.
Electronic delivery: Firms may deliver statements electronically with customer consent, subject to specific requirements around access, format, and retention.

How Loffa Helps You Comply

Quarterly Broker Statement (QBS)

Automated statement generation: QBS generates compliant quarterly statements that include all required content elements — positions, balances, activity, and regulatory disclosures.
Inaccuracy notice inclusion: Every statement generated by QBS automatically includes the required notice instructing customers to report inaccuracies.
Distribution management: QBS handles the logistics of statement distribution, tracking delivery status and maintaining records of when each statement was sent.
Archival and retrieval: All generated statements are archived for the required retention period and are searchable for regulatory examinations or customer inquiries.

Recent Updates

2024: Eight new supplementary materials, announced in Regulatory Notice 23-02, became effective January 1, 2024, addressing electronic delivery standards, content enhancements, and customer notification requirements.
Electronic delivery focus: Increased regulatory attention to the standards and safeguards around electronic statement delivery, including consent management and accessibility.