General Securities Sales Supervisor (Series10) Practice Exam

Under Rule 17a-4, customer statements must be posted no later than?

1. Settlement Date

2. The day after trade date

3. Day of transaction

4. Two days after trade date

The correct answer is: Settlement Date

Under Rule 17a-4, customer statements must be posted no later than the settlement date. This regulation outlines the requirements for recordkeeping and the preservation of records related to transactions in securities. The reason the settlement date is significant is that it typically marks the completion of a transaction, at which point investors need to have a clear understanding of their account balances, positions, and any transactions that have occurred. By posting customer statements by the settlement date, firms ensure that clients have timely access to accurate information about their investments, which is crucial for effective decision-making. This timing also aligns with the financial markets' operational protocols, allowing customers to see the results of their trades and manage their portfolios with updated information. This ensures transparency and maintains client trust in the brokerage firm’s ability to manage their accounts accurately. The other options suggest earlier reporting times that could potentially lead to confusion or misinformation if the statements do not reflect the finalized transaction status that only becomes clear by the settlement date. Thus, posting by that date reinforces the accuracy and reliability needed in customer financial information.