FINRA Rule 2261

It combines two older rules regarding the Disclosure of Financial Condition to Customers and Disclosure of Financial Condition to Other Members, with certain modifications. The new rule sets forth members’ obligations regarding making available to customers and other members information contained in a member’s most recent balance sheet.

Specifically, a member must make available to inspection by any regular customer, upon request, the most recent balance sheet in paper or electronic form if the customer has consented to receive the balance sheet in electronically.  A “customer” under this rule is any person who has cash or securities on deposit with the member.

Additionally, the rule requires that any member who has on deposit cash or securities of another member deliver upon written request by the other member, in paper or electronic form, a statement of its financial condition as one would find on a balance sheet prepared using GAAP. Consent of the other member is not required to permit electronic delivery of the balance sheet.