Under state law, how often must a broker typically reconcile the brokerage trust (escrow) account?

TRUST ACCOUNT RECONCILIATION: Brokers must regularly reconcile the trust/escrow account — most states require MONTHLY reconciliation. THREE-WAY RECONCILIATION: The broker compares and confirms that these all AGREE: (1) the trust account BANK STATEMENT balance; (2) the broker's TRUST ACCOUNT JOURNAL/record (running total of all funds); (3) the sum of all INDIVIDUAL CLIENT/BENEFICIARY LEDGERS (what is owed to each party); ALL THREE MUST MATCH; DISCREPANCY: Any difference signals an error, an unrecorded transaction, or — most seriously — a shortage (which could indicate commingling or conversion); must be investigated and corrected immediately; RECORDS: Brokers must maintain detailed records of every trust deposit and disbursement, with the date, amount, source, and purpose; SEPARATE ACCOUNT: Trust funds must be in a separate account, never mixed with operating/personal funds (no commingling); RETENTION: Records kept for the state-required period; STATE AUDITS: Commissions audit trust accounts; deficiencies lead to discipline; the requirement for regular (typically monthly) three-way trust account reconciliation is a critical broker responsibility and a frequent state broker exam topic — proper trust accounting protects client funds.