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

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What is the period members must notify FINRA if principal exceptions are relied upon?

10 days
20 days
30 days
60 days

The correct answer is: 30 days

Members must notify FINRA within 30 days when they rely on principal exceptions. This requirement ensures that the regulatory body is informed promptly about the use of these exceptions, allowing for proper oversight and compliance with industry regulations. Principal exceptions typically refer to situations where a firm may not have to follow certain standard procedures or requirements, such as maintaining a physical presence in a specific location. Timely notification is crucial for maintaining transparency and accountability in the financial markets, as it enables FINRA to monitor firms' activities and enforce rules effectively. The 30-day timeframe strikes a balance, giving firms enough time to report while allowing FINRA to take action if necessary.