Posted in Finance, Accounting and Economics Terms, Total Reads: 424
Definition: Descriptive Statement
A bank or other financial institution has withdrawals, fees, etc. which are often given in chronological order and have no physical substance such as check attached with it form descriptive statement. Under different exchanges such as US Securities Exchange Commission or in SEBI in India require fund houses to send monthly / quarterly performance statement to the investors which form part of descriptive statement.
As per US SEC regulations, the descriptive statement can be for debit card transactions, ATM transactions, or any other electronic transactions covered within the period of the descriptive statement. Account holders also have a responsibility of notifying to the financial institution of any unauthorized or incorrect statement within a period of 60 days from receipt of statement as per the responsibilities under Regulations E.
Failure to respond to irregularity within a period of 60 days results in the liability of the error being transferred to the account holder. Thus, thoroughly reading the statement provides incentive to account holder to prevent any fraud or detect any error.