Contact Us Licensee Login

Brokerage Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

VIII. Year End Reports and Office Inspections

Accountant’s Report

RECBC mails to each brokerage an Accountant’s Report form, together with a Brokerage Activity Report form, in advance of the brokerage’s fiscal year end. The brokerage must complete Part A of the Accountant’s Report, which requires the name of the brokerage, the beginning and end dates of the brokerage’s fiscal year, and a listing of all savings institutions and accounts that the brokerage opened, maintained or closed during the fiscal year. This requirement includes the brokerage’s general operating account.

The accountant must complete Part B of the Accountant’s Report. The accountant is required to report on whether the brokerage maintained proper books, accounts and other records as required by RESA, the Regulation and the Rules. The accountant must also report on whether sufficient funds were maintained in the brokerage trust accounts and commission trust accounts to discharge the brokerage’s trust liabilities, and whether the brokerage prepared monthly trust reconciliations for all month ends that occurred in its fiscal year in relation to the trust accounts maintained by the brokerage. All exceptions discovered in the course of the review must be reported.

In order to prepare the Accountant’s Report, the accountant must be provided with all monthly reconciliations for each trust account and all monthly trust liability and asset reconciliations for all pooled trust accounts. The brokerage must also provide the financial statements for the fiscal year and any subordination agreements.

Additionally, the brokerage must disclose to the accountant every savings institution account opened, maintained or closed during the fiscal year. The brokerage must provide access to all financial and other records of the brokerage and any other information that the accountant considers necessary.

The accountant will determine the scope of the specific procedures to be undertaken in order to accurately report on the matters as noted above.

After the accountant prepares Part B of the Accountant’s Report, the managing broker and an officer, director, partner or the sole proprietor should review the report with the accountant. The brokerage may wish to submit a letter to RECBC indicating sections of the report they disagree with, or providing an explanation, if they feel an explanation is necessary.

A copy of the Accountant’s Report form is available on RECBC’s website at