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

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Investment Company and Variable Contracts Products Principals Exam with our interactive quiz. Master key concepts with multiple choice questions designed to enhance your understanding and boost your confidence for the Series 26.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the timeframe for a member to notify the SEC and FINRA after the resignation or termination of their independent accountant?

10 business days
15 business days
20 business days
30 business days

The correct answer is: 15 business days

The requirement for a member to notify the SEC and FINRA following the resignation or termination of their independent accountant is indeed 15 business days. This timeframe is stipulated to ensure that regulatory authorities are promptly informed about changes that could impact the company's financial reporting and auditing practices. Timely notification helps maintain transparency and allows regulators to assess any potential implications that the change in the independent accountant may have on the firm's compliance and financial integrity. This regulation reflects the importance of maintaining an effective audit process and demonstrates that the firm is proactive in its compliance obligations. By mandating this notification within a specific timeline, the regulatory bodies ensure that they can oversee the continuity of reliable financial reporting to protect investors and uphold market integrity.