Dominate the Series 26 in 2026 – Master the Investment & Variable Contracts Challenge!

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.