11. Know Exactly Whats In That Account
As brokerages increase their use of consolidated reports which combine all of a customers financial holdings into a single statement, they must also have procedures in place to conduct due diligence on all of the customers assets. That includes assets held outside the firm. When consolidated financial reports contain assets not in the broker-dealers 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.