What is the deadline for an Investment Advisor to record a transaction in a client's account?

What is the deadline for an Investment Advisor to record a transaction in a client's account?

• A. Within 5 days of the transaction
• B. 10 days of the end of each quarter
• C. 30 days of the end of each quarter
• D. At the end of the fiscal year

Answer: (B)

The deadline for an Investment Advisor to record a transaction in a client's account is at the end of each quarter, specifically within 10 days. This requirement aligns with the regulatory expectations for accurate and timely reporting of transactions to ensure transparency and compliance with the relevant rules governing the activities of investment advisors. Recording transactions regularly helps maintain accurate records that are essential for both the advisor's management and the client's understanding of their account activity. Timely record-keeping is crucial because it allows investment advisors to keep clients well-informed about their investments and to assist them in making sound financial decisions. Regular updates also facilitate audits and reviews, ensuring that advisors adhere to fiduciary duties and regulatory obligations. This standard reflects the importance of systematic transaction recording in managing clients' accounts effectively and ethically.

The deadline for an Investment Advisor to record a transaction in a client's account is at the end of each quarter, specifically within 10 days. This requirement aligns with the regulatory expectations for accurate and timely reporting of transactions to ensure transparency and compliance with the relevant rules governing the activities of investment advisors. Recording transactions regularly helps maintain accurate records that are essential for both the advisor's management and the client's understanding of their account activity.

Timely record-keeping is crucial because it allows investment advisors to keep clients well-informed about their investments and to assist them in making sound financial decisions. Regular updates also facilitate audits and reviews, ensuring that advisors adhere to fiduciary duties and regulatory obligations. This standard reflects the importance of systematic transaction recording in managing clients' accounts effectively and ethically.