How often must a firm send account statements to a customer with no transactions for 18 months and a cash balance?

A firm is required to send account statements to customers in order to keep them informed about their account activity and balances. For customers who have had no transactions in their account for an extended period, such as 18 months, but still maintain a cash balance, the frequency of account statements can depend on regulatory requirements.

In this scenario, a quarterly statement is mandated for accounts without any transactions for 18 months if they hold a cash balance. This requirement serves to ensure that customers are kept informed of their account status, as a lack of transactions could indicate inactivity or the potential for account maintenance concerns. By sending statements quarterly, the firm can provide transparency and keep the customer updated.

While other frequencies like monthly, annually, or biannually are also possible in different contexts, they do not align with the specific regulations surrounding accounts that fall into this category of inactivity but still possess a cash balance. The quarterly frequency strikes a balance between keeping the customer informed and managing the firm's operational responsibilities.