Final answer:
Yes, member firms must notify FINRA if any Fidelity Bond is cancelled, terminated or substantially modified. FINRA requires member firms to report any changes in their fidelity bonds.
Step-by-step explanation:
Yes, member firms must notify FINRA if any Fidelity Bond is cancelled, terminated or substantially modified.
FINRA is the Financial Industry Regulatory Authority, and it requires member firms to report any changes in their fidelity bonds. Fidelity bonds provide coverage for losses that may occur as a result of fraudulent or dishonest acts committed by employees.
Failing to notify FINRA of such changes can result in disciplinary action or penalties for the member firm.