Welcome to Account Statements and Confirmations, the customer-facing documents that communicate account information, transaction information, tax-reporting information, and required disclosures.
Exam Weight: 4 of 35 in Function 1 (8% of exam)
What You'll Learn
In this unit, you'll cover:
- Customer account statements: The account information presented to a customer and how a statement differs from a performance report.
- Confirmations and delivery: Transaction records, electronic delivery, non-trade confirmations, third-party activity notices, and prospectus delivery.
- Tax reporting and withholding: The purposes of tax forms, the role of cost basis, and the difference between optional and required withholding.
- Document integrity: Improper pricing, falsifying documents, and withholding customer documents.
Why This Matters
Operations professionals help ensure customers receive accurate, complete documents at the appropriate time. On the exam, similar documents can serve very different purposes, so identify what the document communicates before choosing an answer.
Let's start with customer account statements and the distinct role of performance reports.