What recordkeeping is generally expected of a broker maintaining a trust account?

A broker who holds client funds must keep complete and current trust-account records that identify whose money is in the account, when it was deposited, to whom and when it was disbursed, and the running balance attributable to each transaction. The account should be reconciled regularly (commonly monthly) against the bank statement to catch errors and confirm that the total held matches the sum owed to all parties. These records must be retained for the period set by state law and made available to auditors. Sloppy or missing trust records are a frequent basis for discipline, so brokers establish clear procedures and often designate who is authorized to handle the account.