Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

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After how many business days must a firm notify the SEC and FINRA concerning a change to its U-4?

10 business days
15 business days
30 business days
60 business days

The correct answer is: 30 business days

A firm must notify the SEC and FINRA within 30 business days regarding a change to a registered individual’s Form U-4, which is the uniform application for securities industry registration or transfer. This requirement is crucial as it ensures that regulatory bodies maintain up-to-date information about the qualifications, affiliations, and any disclosures related to registered individuals in the industry. The 30-day timeframe allows firms to promptly communicate significant changes such as disciplinary actions, a change of employment, or other pertinent events that may affect a registered person's standing and suitability in the securities business. This regulation helps promote transparency and accountability within the financial services industry, enabling regulators to effectively monitor compliance and protect investors. Failing to comply with this timeline can lead to regulatory scrutiny and potential penalties, emphasizing the importance of adhering to the proper notification procedures.