What must a broker do when their license becomes inactive?

When a broker's license becomes inactive, it is crucial that they continue to maintain their trust accounts until all deposits are correctly disbursed. This requirement ensures that any funds held on behalf of clients are managed in accordance with legal and ethical standards. Maintaining trust accounts highlights the broker's responsibility to safeguard clients' money, ensuring that any outstanding transactions or obligations related to those funds can be completed properly.

Closing trust accounts immediately could lead to complications or the mishandling of client funds, while transferring accounts to another broker without proper procedure might violate regulations or client agreements. Stopping all business operations doesn't align with the necessary requirements for handling existing clients and their transactions. By maintaining trust accounts, the broker demonstrates a commitment to ethical practice and client service, even while their license is inactive.