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

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Once an account is opened, how frequently are firms required to furnish customers with information from their new account form?

  1. Within 15 days and at least every 12 months

  2. Within 30 days and at least every 36 months

  3. Within 30 days and at least every 12 months

  4. Within 60 days and at least every 36 months

The correct answer is: Within 30 days and at least every 36 months

The correct response emphasizes the regulatory requirement for broker-dealers to maintain communication with their customers regarding the accuracy of their new account information. After an account is established, firms are mandated to provide customers with the details from their new account form within 30 days. Additionally, it is required that this information is provided again at least every 36 months. This ensures that customers have an opportunity to review their account information periodically, allowing them to confirm that personal data, investment objectives, and other pertinent details remain current and accurate. This practice is in line with best practices for maintaining transparency and understanding between the firm and its customers.

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