Final answer:
An access person under the IA Act of 40 must submit a report of personal security holdings within 10 days of becoming an access person, to prevent conflicts of interest and misuse of their position.
Step-by-step explanation:
Under the Investment Advisers Act of 1940, specifically Rule 204A-1, when an individual becomes an access person at a registered investment adviser, they are required to submit a report of their personal security holdings. This report must be provided no later than 10 days after the person becomes an access person, and it should include holdings in which the access person had any direct or indirect beneficial ownership and have to report the information that would be required in a quarterly transaction report. The rule is an effort to prevent conflicts of interest and to ensure that access persons do not take advantage of their position for personal gain at the expense of clients.