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

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What criteria affects the processing time of a membership application by FINRA?

Completeness of the application
Applicant's financial standing
Location of the branch office
Previous compliance history

The correct answer is: Completeness of the application

The completeness of the application is the primary criterion that affects the processing time of a membership application by FINRA. When an application is submitted, it must contain all required information and documentation for it to be deemed complete. Incomplete applications can lead to delays as FINRA may need to request additional information or clarification from the applicant. If the application has all the necessary details from the onset, it can streamline the review process, allowing for a more efficient evaluation and quicker approval or denial. Other factors such as the applicant's financial standing, location of the branch office, and previous compliance history may play roles in the overall assessment of an application, but they do not have as direct an impact on the speed of processing as the completeness of the application itself. A well-prepared and complete application facilitates a smoother and faster review process, making it a key component in reducing processing times.