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6.4 Account Statements

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Series 6 Investment Company Products

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1 Introduction

About the Series 6 Exam How to Use This Course

2 Chapter 1: Regulatory Fundamentals

1.1 Securities Regulations Overview 1.2 FINRA Rules and Structure 1.3 Communications with the Public 1.4 Prospectus Requirements 1.5 Ethical Standards and Prohibited Practices

3 Chapter 2: Investment Company Products

2.1 Mutual Funds Overview 2.2 Types of Mutual Funds 2.3 Share Classes and Sales Charges 2.4 Reducing Sales Charges 2.5 Mutual Fund Taxation 2.6 Mutual Fund Operations 2.7 Unit Investment Trusts (UITs) 2.8 Exchange-Traded Funds (ETFs) 2.9 Closed-End Funds

4 Chapter 3: Variable Contracts

3.1 Variable Annuities Overview 3.2 Accumulation and Annuity Phases 3.3 Annuity Payout Options 3.4 Annuity Features and Riders 3.5 Variable Annuity Taxation 3.6 Variable Life Insurance 3.7 Variable Life Insurance Taxation 3.8 Variable Contract Suitability

5 Chapter 4: Customer Accounts

4.1 Types of Customer Accounts 4.2 Retirement Accounts 4.3 529 College Savings Plans 4.4 Customer Identification Program (CIP) 4.5 Know Your Customer (KYC) 4.6 Account Documentation and Disclosures 4.7 Special Account Situations

6 Chapter 5: Suitability & Recommendations

5.1 Suitability Obligations 5.2 Investment Objectives 5.3 Risk Tolerance and Time Horizon 5.4 Making Suitable Recommendations 5.5 Retirement Planning Recommendations 5.6 Education Planning Recommendations 5.7 Recognizing Unsuitable Recommendations

7 Chapter 6: Processing Transactions

6.1 Mutual Fund Transactions 6.2 Variable Annuity Transactions 6.3 Trade Confirmations 6.4 Account Statements 6.5 Recordkeeping Requirements 6.6 Error Resolution

6.4 Account Statements

Key Takeaways Explain This Topic AI

Rule 2231 requires statements at least quarterly; penny stocks require monthly.

Statements must show positions, activity, balances, and year-to-date summaries.

A discrepancy notice advising customers to report errors is mandatory.

DVP/RVP accounts can waive statements with written consent and no balances.

Electronic delivery requires customer consent and access.

Last updated: January 2026

Account statements provide customers with periodic summaries of their holdings, activity, and account value. FINRA Rule 2231 establishes the minimum requirements for customer account statements.

  • FINRA Rule 2231 Requirements
  • Minimum Frequency
  • Situation Required Frequency
  • Standard accounts At least quarterly
  • Penny stock holdings Monthly
  • No positions or activity Quarterly (if any balance in year)

Industry Practice: Most firms send statements monthly, even though quarterly is the minimum requirement.

When Statements Must Be Sent

Statements must be sent to each customer whose account had:

  • A security position, OR
  • A money balance, OR
  • Account activity

...during the period since the last statement.

  • Required Statement Information
  • Position Information
  • Information Description
  • Security name Full description of holdings
  • Quantity Number of shares/units owned
  • Market value Current value of positions
  • Cost basis Original purchase price (if available)
  • Unrealized gain/loss Paper profit or loss
  • Account Activity
  • Activity Type Information Shown
  • Purchases Date, security, quantity, price
  • Sales Date, security, quantity, price, gain/loss
  • Dividends Amount received, reinvestment
  • Interest Amount credited
  • Fees Management fees, charges
  • Deposits/Withdrawals Cash movements
  • Summary Information
  • Beginning balance for the period
  • Ending balance for the period
  • Total deposits and withdrawals
  • Total fees and charges
  • Year-to-date activity summary
  • Customer Notification Requirement

FINRA Rule 2231 requires statements to include:

Mandatory Notice: A statement advising the customer to report promptly any inaccuracy or discrepancy in their account to their brokerage firm.

DVP/RVP Account Exception

Quarterly statements are NOT required if ALL of the following are true:

  • Condition Requirement
  • 1 Account is carried solely for DVP/RVP execution
  • 2 All transactions are DVP/RVP
  • 3 No security or money positions at quarter-end
  • 4 Customer consents in writing
  • DVP = Delivery Versus Payment RVP = Receipt Versus Payment
  • Electronic Delivery

Firms can deliver statements electronically if:

  • Requirement Description
  • Customer consent Must agree to electronic delivery
  • Access Customer must be able to access documents
  • Retention Customer must be able to retain copies
  • Revocation Customer can revoke consent
  • SEC standards Must comply with SEC electronic delivery rules
  • Customer Review Responsibilities
  • What Customers Should Verify
  • Item Check For
  • Positions All securities owned are listed correctly
  • Quantities Share/unit counts are accurate
  • Values Market values are reasonable
  • Activity All transactions were authorized
  • Cash Deposits and withdrawals are correct
  • Fees Charges are as expected
  • Reporting Discrepancies

If errors are found:

  • Contact the firm immediately
  • Document concerns in writing
  • Keep copies of statements
  • Follow up until resolved

Importance: Failure to report errors may be interpreted as acceptance of account activity, potentially affecting dispute resolution.

Statement vs. Confirmation

  • Feature Trade Confirmation Account Statement
  • Frequency Per transaction Periodic (quarterly/monthly)
  • Detail Single transaction All account activity
  • Timing At or before settlement End of period
  • Purpose Verify specific trade Review overall account
  • Mutual Fund Statements

Mutual fund companies send their own statements:

  • Typically quarterly or monthly
  • Show share position and value
  • Transaction history
  • Distribution information
  • May be separate from brokerage statement
  • Variable Annuity Statements

Insurance companies send contract statements:

  • Typically quarterly or annually
  • Contract value
  • Subaccount allocations
  • Surrender value
  • Death benefit value
  • Fee disclosure
  • Retention of Statements

Customers should retain statements for:

  • Tax purposes - Cost basis, gain/loss records
  • Dispute resolution - Evidence of account history
  • Financial planning - Track progress toward goals
  • Estate planning - Documentation of assets
  • Key Exam Points
  • Quarterly minimum - Standard accounts require quarterly statements
  • Monthly for penny stocks - More frequent requirement
  • Discrepancy notice required - Must advise customers to report errors
  • Electronic delivery - Requires customer consent
  • DVP/RVP exception - Can waive statements with written consent
  • Review promptly - Customers should verify accuracy
  • Document in writing - Report errors in writing to protect rights