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How should trust fund records be maintained by a brokerage?

  1. All records can be kept electronically without constraints

  2. The records must include details like date received and account balance

  3. A transaction log is sufficient for compliance

  4. Personal expenses should be included for clarity

The correct answer is: The records must include details like date received and account balance

Maintaining trust fund records is a crucial requirement for brokerages to ensure compliance with state laws and regulations. The correct approach is to include comprehensive details such as the date funds were received, the amount of each transaction, and the current account balance. This level of detail is essential for transparency and accountability, enabling the brokerage to accurately track funds held in trust for clients. By keeping accurate and organized records, the brokerage not only meets compliance standards but also protects clients' interests regarding their funds. This thorough documentation is important during audits and in resolving any disputes that may arise concerning the handling of trust funds. Proper maintenance of these records ultimately fosters trust in the brokerage’s financial practices and ensures adherence to the rules established in Minnesota's real estate laws.