General Securities Sales Supervisor (Series10) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the General Securities Sales Supervisor (Series 10) Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Prepare confidently for your exam day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How often must broker-dealers send balance sheet copies to customers?

Monthly
Quarterly if there is account activity; otherwise, semi-annually
Semi-annually
Annually

The correct answer is: Semi-annually

Broker-dealers are required to send their customers a copy of their balance sheet semi-annually. This requirement is part of the regulatory framework established to ensure transparency and to keep customers informed about the financial health of the brokerage firm handling their investments. The semi-annual disclosure gives customers an opportunity to review the financial position of the broker-dealer and assess any potential risks associated with their account. Although some financial institutions may provide more frequent updates, such as quarterly statements, the specific requirement for sending balance sheet copies hinges on the semi-annual timeline. Monthly or annual reporting does not align with the regulatory obligations that govern how often broker-dealers must communicate their financial position to clients. The semi-annual frequency allows for a balanced approach—keeping customers informed while also minimizing unnecessary administrative burdens on the broker-dealers. This is essential for maintaining trust and confidence in the financial services industry.