Tuesday, May 21News That Matters

Series 24 Exam for Financial Industry Regulatory Authority (FINRA)

About Series 24 Exam for Financial Industry Regulatory Authority (FINRA)

The Series 24 exam, administered by the Financial Industry Regulatory Authority (FINRA), is a significant step for individuals seeking to become registered principals in the securities industry. This comprehensive exam, often referred to as the General Securities Principal Qualification Examination, assesses a candidate’s knowledge and competency in managing and supervising activities related to the sale and distribution of securities, including equities, bonds, mutual funds, and other financial products.

Key aspects of the Series 24 exam include:

  1. Eligibility: To take the Series 24 exam, candidates must first pass the Series 7 exam, which is the General Securities Representative Exam. Series 24 candidates should also be associated with and sponsored by a FINRA-member firm.
  2. Exam Content: The Series 24 exam covers a wide range of topics, including securities regulations, compliance and supervisory procedures, trading and market-making, customer accounts, and more. It is designed to evaluate a candidate’s ability to perform the duties of a general securities principal.
  3. Structure: The Series 24 exam consists of 150 multiple-choice questions, and candidates are given 3 hours and 45 minutes to complete the test. The questions are divided into four main job functions: supervision of registration of employees, supervision of trading and market-making activities, supervision of investment banking and research, and conducting research and analysis for the firm’s own account.
  4. Passing Score: To pass the Series 24 exam, candidates must achieve a score of 70% or higher. The exam is challenging, and thorough preparation is essential.
  5. Study Materials: Candidates often use study materials provided by reputable test preparation providers. These materials typically include textbooks, practice exams, and online resources. It’s crucial to choose materials that align with the most current FINRA regulations and industry standards.
  6. Continuing Education: After passing the Series 24 exam, registered principals are required to complete continuing education requirements to stay up-to-date with industry changes and regulations.
  7. Career Opportunities: Successfully passing the Series 24 exam opens up opportunities for individuals to take on leadership roles within brokerage firms, such as branch management or compliance officer positions.
  8. Regulatory Compliance: Principals who pass the Series 24 exam are responsible for ensuring that their firms comply with all relevant securities laws and regulations. They play a vital role in maintaining the integrity of the financial markets.

Study Guide For Series 24 exam

In conclusion, the Series 24 exam is a rigorous test of knowledge and competence in securities industry regulations and supervision. Passing this exam is a significant achievement for those aiming to take on leadership and compliance roles within FINRA-member firms. Thorough preparation, including studying the most current regulations and industry standards, is crucial for success in this challenging exam.

Flash Cards For Series 24 exam

Leave a Reply