4431. Handling dividends and interest

Or jump to a Series:

    1. A Dealer Member must have a system to record the total dividends and interest payable and receivable at due date.

    2. Dividend and interest record keeping employees must not handle cash or authorize payments.

    3. At least monthly, a Dealer Member must:

      1. reconcile dividend and interest accounts, and

      2. review aged dividend receivables.

    4. Only the department manager or another appropriate manager may authorize dividend and interest write‑offs.

    5. The department manager or another appropriate manager must approve journal entries to and from dividend and interest accounts.

    6. A Dealer Member:

      1. must not pay dividend claims, other than as part of an automatic settlement system, unless accompanied by supporting documents such as proof of registration, and

      2. must compare supporting documents with internal records for validity and then have the department manager or another appropriate manager approve them.

    7. A Dealer Member must withhold non‑resident tax when required by law.

    8. Where required by applicable laws, a Dealer Member must ensure client income is appropriately reported for income tax purposes.

    There is no history log for this rule.