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

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Members have how many days to report misappropriation of funds to FINRA?

10 days
20 days
30 days
45 days

The correct answer is: 30 days

Members are required to report misappropriation of funds to FINRA within 30 days. This reporting timeline is essential for maintaining the integrity of financial markets and ensuring prompt action can be taken to address any potential misconduct. The 30-day period allows firms an appropriate amount of time to investigate the matter internally while ensuring that FINRA is notified in a timely manner, thus facilitating oversight and regulatory action as needed. This timeframe highlights the importance of vigilance in the management of funds and emphasizes the regulatory expectation that firms will not only be aware of such incidents but also act quickly to inform regulatory bodies. The reporting requirement is part of FINRA's broader framework to oversee and enforce compliance with the rules governing member firms.