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11 Ways Brokers Need to Protect Themselves from FINRA

11. Know Exactly What’s In That Account


As brokerages increase their use of consolidated reports which combine all of a customer’s financial holdings into a single statement, they must also have procedures in place to conduct due diligence on all of the customer’s assets. That includes assets held outside the firm. “When consolidated financial reports contain assets not in the broker-dealer’s possession they must have procedures in place to conduct due diligence on the valuation of such assets prior to including them on financial account reports to customers,” writes FINRA.



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