Trust Funds: Trust fund accounting
For every trust account a broker maintains, the broker maintains a general ledger for the overall trust account. The broker also maintains aseparate subaccount ledger for each owner of the trust funds.
Further, the broker maintains a separate trust fund record with a ledger of any trust funds the broker receives which are not deposited in the trust account. All records of trust funds are retained by the broker for three years.
Brokers are to reconcile the general ledger for the trust account against the separate subaccount ledgers each month when deposits or withdrawals are made.
Unexplained excess funds called overages are still trust funds. Excess funds are to remain in the trust account or be placed in a separate trust account specifically for unexplained excesses, and escheat to the state if they are unclaimed after three years
For every trust account a broker maintains, the broker maintains a general ledger for the overall trust account. The broker also maintains aseparate subaccount ledger for each owner of the trust funds.
Further, the broker maintains a separate trust fund record with a ledger of any trust funds the broker receives which are not deposited in the trust account. All records of trust funds are retained by the broker for three years.
Brokers are to reconcile the general ledger for the trust account against the separate subaccount ledgers each month when deposits or withdrawals are made.
Unexplained excess funds called overages are still trust funds. Excess funds are to remain in the trust account or be placed in a separate trust account specifically for unexplained excesses, and escheat to the state if they are unclaimed after three years
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