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

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Which of the following timeframes applies to notifying the executing member after an associated person opens an account?

15 days
30 days
45 days
60 days

The correct answer is: 30 days

Notifying the executing member after an associated person opens an account must be done within 30 days. This requirement is essential to ensure that firms maintain up-to-date information regarding the accounts held by their associated persons, which helps in complying with regulatory requirements and internal policies. Timely notification is crucial for various reasons, including monitoring for potential conflicts of interest, ensuring compliance with the firm’s policies, and adhering to regulations set forth by governing bodies. Filing this notification within 30 days helps maintain the integrity and transparency of the firm's operations, enabling better oversight of the activities of associated persons. Other timeframes, such as 15, 45, or 60 days, do not align with this regulatory requirement, as they extend beyond the required period for proper notification and could result in compliance issues.