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

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When must a member report allegations of theft or forgery to FINRA?

10 days
20 days
30 days
45 days

The correct answer is: 30 days

Members are required to report allegations of theft or forgery to FINRA within a specific timeframe to ensure prompt attention and investigation into potential violations of securities laws. The correct timeframe for this reporting is 30 days from the day the member becomes aware of the allegations. This timeframe is established to maintain regulatory oversight and consumer protection in the financial markets. By reporting these incidents within 30 days, firms help to ensure that corrective measures can be taken swiftly and that any potential harm to clients or the integrity of the market can be mitigated. This practice not only protects investors but also assists regulatory bodies like FINRA in maintaining the overall integrity of the securities industry. The other options indicate different reporting periods that do not align with the regulatory requirements, reflecting a lack of understanding of the specific obligations set forth by FINRA regarding such serious allegations.