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

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What must a member do if the lost securities are still missing after 2 business days?

Notify the transfer agent immediately
Report the loss to the SIC and the transfer agent
Start a recovery process
File a police report

The correct answer is: Report the loss to the SIC and the transfer agent

When securities are lost and still unaccounted for after two business days, the correct course of action involves reporting the loss to the Securities Investor Protection Corporation (SIPC) as well as the transfer agent. This is crucial because notifying SIPC helps in determining the next steps for investor protection and potentially recovering lost assets. The transfer agent, responsible for managing the issuance and transfer of securities, plays a key role in tracking and securing the ownership of these securities as part of their responsibilities. A timely notification helps to ensure that appropriate measures are taken to address the situation and helps protect the interested parties' rights in case of fraudulent activity or further complications arising from the lost securities.