1. (1) The Agency will conduct clients’ trust account reconciliation reviews.
2. (2) The Agency will provide a managing principal broker with written notice of a clients’ trust account reconciliation review at least 10 business days before required information and documentation must be provided to the Agency.

3. (3) After the Agency reviews the information and documents provided in a reconciliation review, the Agency will take one of the following actions:

   1. (a) If the information and documents comply with statutes and rules, the Agency will provide written notice to the authorized principal broker confirming compliance only as to the information and documents provided;
   2. (b) If the information and documents indicate that the authorized principal broker may be subject to additional documentation and procedural requirements that were not part of the reconciliation review, the Agency will provide written notice to the authorized principal broker detailing the Agency’s expectations for compliance on those matters;

   3. (c) If the information and documents demonstrate that the authorized principal broker is not in compliance, the Agency will provide written notice to the managing principal broker that:

      1. (A) The authorized principal broker must cure all noncompliance issues and provide information and documentation to the Agency that the noncompliance has been cured within 30 days of the date of the notice; and

      2. (B) If all noncompliance issues are not cured within 30 days, the Agency may:

         1. (i) Issue an educational letter of advice;
         2. (ii) Impose sanctions on the principal broker; or
         3. (iii) Initiate an investigation and not allow additional time for the authorized principal broker to cure the noncompliance.
         4. (d) If the Agency has reasonable grounds to believe that the funds belonging to others may be missing, funds may have been misappropriated, or that the authorized principal broker’s records are in such a condition that the authorized principal broker is placing funds belonging to others at risk, the Agency may immediately initiate an investigation without providing the authorized principal broker with an opportunity to cure noncompliance.
4. (4) If an authorized principal broker does not respond to a reconciliation review within the time period required in the notice, the Agency may initiate an investigation.

5. (5) The Agency may conduct a reconciliation review:

   1. (a) As part of a regular, routine, and random selection of managing principal broker clients' trust accounts for reconciliation reviews;
   2. (b) After a compliance review, when the Agency has determined that an authorized principal broker was not in compliance and provided the authorized principal broker with an opportunity to cure the non-compliance; and
   3. (c) After an investigation has been initiated.

Statutory/Other Authority

ORS 696.385

Statutes/Other Implemented

Chapter 234, 2017 Laws & Chapter 389, (2025 Laws)

History

REA 4-2025, amend filed 10/09/2025, effective 01/01/2026
REA 1-2022, amend filed 04/27/2022, effective 05/01/2022
REA 1-2017, adopt filed 11/17/2017, effective 01/01/2018