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

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Member firms must verify the accuracy of an applicant's Form U-4 within how many days of filing?

15 days
30 days
45 days
60 days

The correct answer is: 30 days

The requirement for member firms to verify the accuracy of an applicant's Form U-4 within a specific time frame is set by the Financial Industry Regulatory Authority (FINRA). Firms must ensure that all information provided in the Form U-4, which is used to register individuals associated with a broker-dealer, is accurate and complete. The correct response indicates that member firms have a 30-day window after the filing of the Form U-4 to conduct this verification. This timeframe is critical for maintaining the integrity of the securities industry and ensuring that all registered individuals meet the necessary qualifications and standards. Verifying the information promptly helps prevent any inaccuracies that could affect licensing, compliance, and overall regulatory oversight. A shorter verification period could lead to rushed evaluations, while a longer period might allow discrepancies to persist. Therefore, the 30-day requirement strikes an appropriate balance, ensuring that firms have ample time to review and confirm all relevant details.