Record whether a customer was sent a transaction confirmation
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the trade record, record the security, the customer, the date of the transaction, and the date a writing was given or sent. Record whether the file describes the broker or dealer as acting as agent or as principal, and whether the account is on the alternative periodic-reporting arrangement in the rule. Do not decide that the writing contained every required item.
- What the lawyer must review
- The lawyer applies 17 CFR 240.10b-10. It is unlawful for a broker or dealer to effect for or with a customer's account any transaction in, or to induce the purchase or sale by the customer of, any security other than U.S. Savings Bonds or municipal securities, unless the broker or dealer, at or before completion of the transaction, gives or sends written notification disclosing the information in paragraph (a). That information includes the capacity in which the broker or dealer is acting. If it is acting as agent, the writing includes the remuneration from the customer unless that remuneration is determined under a written agreement otherwise than on a transaction basis, and, for an NMS stock, a statement whether payment for order flow is received and that the source and nature of the compensation for the particular transaction will be furnished on written request. Paragraph (b) allows transactions without the paragraph (a) notification if the stated conditions are met, including prior written notice that the information will be sent periodically, and a written statement within five business days after the end of each quarterly period for investment company and periodic-plan transactions, and after the end of each monthly period for the other transactions described in paragraph (b)(1). A customer does not include a broker or dealer. Information requested under the rule is given or sent within five business days of the request, or within 15 business days if the transaction was effected more than 30 days before the request. The eCFR page states the same at-or-before-completion requirement. The rule says its list is not the limit of what the antifraud provisions may require.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm instructions and personal circumstances through appropriate direct engagement. Have the responsible lawyer assess safety, capacity or vulnerability concerns and escalation.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.