General Securities Sales Supervisor (Series10) Practice Exam

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When must a broker-dealer file a report with FINRA after receiving a written complaint regarding theft?

Only if the complaint is substantiated
If the complaint is made over the phone
Immediately upon receipt of a written complaint
When the customer withdraws the complaint

The correct answer is: Immediately upon receipt of a written complaint

A broker-dealer is required to file a report with FINRA immediately upon receiving a written complaint regarding theft. The prompt action is crucial because it aligns with regulatory requirements aimed at protecting investors and ensuring the integrity of the financial markets. By filing the report immediately, the broker-dealer allows FINRA to assess the situation and take any necessary actions that may be required to investigate the complaint. The regulatory framework expects firms to treat such serious allegations with urgency, as they may indicate broader issues of misconduct or fraud that need addressing. Delaying the reporting could hinder investigations and the potential resolution of the situation. Receiving a complaint, regardless of whether it is substantiated or not, is a key trigger for reporting obligations. The pathway allows regulators to maintain oversight and help safeguard the interests of the investing public, meaning that the status of the complaint does not affect the requirement to report it.