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

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Prepare for the Series 26 Exam with our comprehensive quiz. Enhance your understanding of investment companies and variable contracts products with detailed questions and explanations. Maximize your exam success!

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What is the filing deadline for a terminal FOCUS II or IIA report if a broker-dealer ceases membership in FINRA?

1 business day
2 business days
5 business days
10 business days

The correct answer is: 2 business days

The correct answer reflects the requirement that when a broker-dealer ceases membership in FINRA, they must file a terminal FOCUS II or IIA report within two business days of ceasing operations. This prompt filing is essential for proper regulatory accounting purposes and to ensure that FINRA and the Securities and Exchange Commission (SEC) have an accurate and timely account of the broker-dealer's financial status at the time of dissolution. This filing deadline is critical, as it provides regulators with the necessary information to monitor the cessation of business activities and to assess any potential impact on clients and the market. Timely reporting is instrumental in maintaining regulatory oversight and protecting investors, which is a cornerstone of financial market operations. The specifics of the filing timeline ensure that there is no lapse in essential reporting that could lead to regulatory issues or gaps in oversight for the broker-dealer's activities prior to termination.