18. How frequently must a broker-dealer that maintains a customer account with one equity position and no activity send the customer account statements?
Answer: B
A broker-dealer must send customer account statements quarterly for accounts with one equity position and no activity.
Broker-dealers are required to send account statements at least quarterly for customer accounts that have an equity position, even if there is no activity in the account. This ensures that customers remain informed about their holdings and any relevant account information.
A) Monthly
Sending account statements monthly is not a requirement for accounts with one equity position and no activity. While some firms may choose to do so for other reasons, the regulatory minimum is quarterly, making this option incorrect.
B) Quarterly
Quarterly statements are mandated for customer accounts with equity positions, regardless of whether there has been any trading activity or not. This option is correct as it aligns with the regulatory requirements set forth for maintaining transparency and communication with clients.
C) Semiannually
Semiannual statements do not meet the regulatory requirements for accounts with equity positions. While less frequent than quarterly statements, this option fails to comply with the established minimum standards for customer account communication.
D) Annually
Annual statements are insufficient for accounts that maintain an equity position. The requirement for quarterly statements is in place to ensure that customers are kept up to date with their account status, making this option incorrect.
Conclusion
The requirement for brokers to send account statements quarterly is crucial for providing customers with timely information about their investments. Options A, C, and D fail to meet the necessary regulatory standards, while option B correctly adheres to the requirement, ensuring that clients are adequately informed about their account holdings.