FINRA Series 7Processes and Confirms TransactionsHard
A firm receives a written customer complaint alleging that a registered representative forged the customer's signature on account documents. Under FINRA Rule 4530, within how many calendar days must the firm report this complaint to FINRA?
- A45 calendar days
- B15 calendar days
- C10 calendar days
- D30 calendar days
Show answer & explanationAnswer & explanation
Correct answer: D. 30 calendar days
FINRA Rule 4530 requires member firms to report certain written customer complaints—including allegations of forgery, theft, misappropriation, or other serious sales practice violations—to FINRA within 30 calendar days of the firm knowing of the complaint.
Why the other options are wrong
- A. 45 days exceeds the required reporting window.
- B. 15 days is not the reporting standard under Rule 4530.
- C. 10 days is too short and does not match the Rule 4530 timeline.
FINRA Rule 4530 Reporting
Requires member firms to report to FINRA within 30 calendar days written customer complaints alleging theft, misappropriation, forgery, or certain other serious violations.
- Applies to specified serious allegations, not all complaints
- 30-calendar-day reporting window from firm's knowledge
- Firms must also report certain statistical/summary complaint information periodically
Memory trick: Forgery found? Thirty days to sound the alarm.