FINRA Rule 2231 requires broker-dealers to send customers a written account statement at least once every calendar quarter, showing all security positions, cash balances, transaction activity, and fees charged during the period. The rule was substantially expanded on January 1, 2024, when FINRA added eight supplementary materials covering electronic delivery, third-party statement sharing, externally held assets, summary statements, and specific front-page disclosures.1FINRA. Regulatory Notice 23-02 – FINRA Amends FINRA Rule 2231 If you hold a brokerage account, the statement you receive is governed by this rule, and it is built to let you confirm what you own and catch anything that looks wrong.
What Every Statement Must Contain
Each account statement has to give you a clear picture of what you hold, what happened in the account during the period, and what the firm charged you. The required content includes:
- Every security held in the account, with each position identified as long or short.
- A current market value for each position. If a value cannot be determined for a particular holding, the statement must say so.
- A summary of all account activity during the period, including purchases, sales, dividends, interest credits and debits, transfers, securities receipts and deliveries, and journal entries.
- The total debit or credit cash balance.
- An itemized listing of all fees or charges applied to the account during the period.
- The name and address of the introducing firm and the carrying firm, if they are different.
Front-Page Disclosures Added in 2024
Supplementary Material .05, effective January 1, 2024, requires certain information to appear clearly and prominently on the front of every statement. The introducing firm and the carrying firm (if different) must both be identified with customer service contact information. The carrying firm’s name and contact info may appear on the back only if printed in bold or highlighted text. The statement must disclose that the carrying firm is a SIPC member, and it must show the account’s opening and closing balances for the period.2FINRA. FINRA Rule 2231 – Customer Account Statements
Every statement must also carry a notice telling you to promptly report any inaccuracy or discrepancy. Where both an introducing and carrying firm are involved, the notice has to tell you to report problems to both. It must also advise you that any oral complaint should be confirmed in writing to protect your rights, including rights under the Securities Investor Protection Act.2FINRA. FINRA Rule 2231 – Customer Account Statements
How Often Statements Must Be Sent
Firms must send a statement at least once every calendar quarter to any customer whose account had a security position, a money balance, or any activity since the last statement went out. The statement reflects positions and activity through the end of the reporting period.2FINRA. FINRA Rule 2231 – Customer Account Statements
Rule 2231 itself does not require more frequent delivery, but many firms send monthly statements as a matter of practice, especially for active accounts. Separate SEC and exchange rules may add reporting obligations depending on the account type and the activity involved.
When Quarterly Delivery Doesn’t Apply
The rule carves out a few situations where the standard schedule changes.
DVP/RVP Accounts
Delivery versus payment and receive versus payment accounts, commonly used for institutional transactions, are exempt from quarterly statements only if every one of the following is true: the account is carried solely for execution on a DVP/RVP basis; all transactions are conducted on a DVP/RVP basis in conformity with FINRA Rule 11860; the account holds no security or money positions at the end of the quarter; the customer has consented in writing to waive regular statements, with the consent kept under Rule 4512 and SEC Rule 17a-4; the firm will provide any particular statement promptly on request; and the firm will promptly reinstate regular delivery on request.2FINRA. FINRA Rule 2231 – Customer Account Statements Miss any one of those conditions and the firm must send quarterly statements like any other account.
Mail Held at Customer Request
Under Supplementary Material .04 and FINRA Rule 3150, a firm may hold statements and other mail for a customer who will not be receiving mail at their usual address. You have to provide written instructions specifying the time period, and the firm must comply with the limits in Rule 3150.1FINRA. Regulatory Notice 23-02 – FINRA Amends FINRA Rule 2231
Court-Appointed Fiduciaries
When a court appoints a guardian, conservator, trustee, or other person with legal authority over an account, the firm may stop sending statements directly to the customer. The fiduciary has to provide written instructions along with an official copy of the court appointment.2FINRA. FINRA Rule 2231 – Customer Account Statements
Electronic Delivery
Firms may deliver statements electronically instead of on paper if they comply with SEC standards. In general, that means obtaining your informed consent before switching to electronic delivery. Consent can be given by manual signature or electronically.2FINRA. FINRA Rule 2231 – Customer Account Statements
When transmitting personal financial information electronically, firms must take reasonable precautions to protect the integrity, confidentiality, and security of the data, tailored to whatever medium they use.3FINRA. Electronic Delivery of Information Between Members and Their Customers (NASD Notice to Members 98-3)
As of early 2026, FINRA’s Board has been considering a proposal to make electronic delivery the default method for required communications, with conditions designed to protect customer choice, including advance notice and the opportunity to opt for paper delivery.4FINRA. Facilitating E-Delivery While Preserving Investor Choice
Valuations for DPPs and Unlisted REITs
Direct participation programs and unlisted real estate investment trusts don’t trade on public exchanges, which makes accurate valuation on your statement especially important. Rule 2231 requires firms to include a per-share estimated value for these securities on every statement, developed using a methodology reasonably designed to produce a reliable result.2FINRA. FINRA Rule 2231 – Customer Account Statements
Two valuation approaches are acceptable. During the early life of an offering, up to 150 days after the second anniversary of breaking escrow, a firm may report the “net investment” value: the offering price minus sales commissions, dealer fees, and estimated organizational expenses as disclosed in the prospectus. At any time, a firm may instead use an appraised value based on annual valuations performed by or confirmed by a third-party valuation expert, using methodology that conforms to standard industry practice.2FINRA. FINRA Rule 2231 – Customer Account Statements
This is an area where enforcement has teeth. FINRA has imposed significant fines on firms that reported inaccurate DPP and REIT valuations. In one case, a firm was fined $300,000 for sending incorrect valuations to roughly 2,390 customers over a seven-month period after its third-party vendor provided outdated data and the firm failed to catch the error. If you hold these products, the number on your statement is worth checking against the sponsor’s most recent reported value.
Statements Sent to Third Parties
Apart from the court-appointed fiduciary situation, a firm may send your statements to someone else only if you give written instructions to do so. Even then, the firm must keep sending statements to you as well, on paper or electronically. A third-party copy cannot replace yours.2FINRA. FINRA Rule 2231 – Customer Account Statements
A separate exception covers duplicate statements required under other FINRA rules, such as Rule 3210 (accounts held by associated persons at other firms) and Rule 2070 (transactions involving FINRA employees). Those duplicates follow their own rules and don’t require additional customer authorization.2FINRA. FINRA Rule 2231 – Customer Account Statements
Externally Held Assets and Summary Statements
Some brokerage statements include assets the firm does not actually carry on your behalf, such as a bank balance or an insurance policy value shown as a convenience. Rule 2231 allows this but imposes strict labeling. Externally held assets must be clearly separated on the statement, with disclosures that the information is included solely as a courtesy, that the valuation data comes from the customer or an outside source and the firm is not responsible for its accuracy, and that such assets may not be covered by SIPC.2FINRA. FINRA Rule 2231 – Customer Account Statements
When a firm and other financial service providers jointly deliver their respective statements alongside a combined summary, Supplementary Material .08 adds further requirements. The summary must note that it includes assets not held by the broker-dealer, identify each entity and its function, distinguish assets held by each entity, and identify which entities are SIPC members. Each provider shown in the summary must have a written agreement attesting that it has procedures for verifying the accuracy of its portion.2FINRA. FINRA Rule 2231 – Customer Account Statements
What to Do If Something on Your Statement Is Wrong
Statements exist so you can catch problems. The rule itself tells you to report any inaccuracy or discrepancy promptly, and to confirm any phone conversation in writing. That written confirmation matters because it protects your rights under the Securities Investor Protection Act if the problem escalates.
FINRA recommends this sequence if you see an error or an unauthorized transaction:
- Contact your broker first and question any transaction you did not authorize or don’t understand.
- Escalate within the firm to the branch manager or compliance department if the broker’s response is unsatisfactory.
- Submit a written complaint if you lost money or see an unauthorized trade, and keep copies of all correspondence.
- File a complaint with FINRA through its online portal if the firm does not resolve the issue. FINRA no longer accepts complaints by fax.
If a complaint falls outside FINRA’s jurisdiction, FINRA may forward it to the appropriate regulator, though that handoff can add time to the investigation.