How to Study for the Series 24
The Series 24 at a glance
- Level
- Principal/supervisory registration (entry-level General Securities Principal; requires a corequisite representative-level registration)
- Format
- 150 scored multiple-choice questions (plus 10 unscored pretest items randomly mixed in, for 160 total delivered), 3 hours 45 minutes, computer-administered
- Passing score
- 70%
- Number of questions
- 150 scored items (exam delivers 160 total items per candidate: 150 scored + 10 unscored/unidentified pretest items)
- Prerequisites
- Candidate must be sponsored by a FINRA member firm (or other applicable SRO member firm) and must already hold, or concurrently register for, a qualifying representative-level registration: Series 7 (General Securities Representative), Series 17 (UK Module of Series 7), Series 37/38 (Canada Module of Series 7), Series 57 (Securities Trader), Series 62 (Corporate Securities Limited Representative), or Series 82 (Private Securities Offerings Representative). The Series 16 (Supervisory Analysts) exam alone also qualifies a candidate for the Research Principal (RP) registration path. All representative-level registrations also require the SIE exam.
- Who it's for
- Entry-level general securities principals, branch managers, and supervisory/compliance staff at FINRA member broker-dealers who will supervise sales, trading, market making, underwriting, research, and overall firm compliance activities. It qualifies a much broader supervisory scope than the limited Series 9/10 sales-supervisor exams, though (unlike Series 9/10) it does not cover municipal securities or options.
Read the official exam guide
Official Series 24 exam guide (FINRA) ↗Know what the exam covers
- Function 1 — Supervision of Registration of the Broker-Dealer and Personnel Management Activities6%
1.1 Broker-dealer and office registration
Covers initiating, amending, or terminating the firm's and its branch offices' registrations in the CRD system, including distinguishing SEC/SRO/state filing obligations and the difference between broker-dealer and investment adviser registration.
1.2 Hiring, registration, and personnel management
Covers pre-hire background/disciplinary screening, registering and terminating associated persons (Forms U4/U5), heightened supervision triggers, and continuing education (Regulatory and Firm Element) obligations.
- Function 2 — Supervision of General Broker-Dealer Activities30%
2.1 Written supervisory procedures and controls
Building, maintaining, and testing WSPs and supervisory controls, including branch/OSJ inspection cycles, CEO certification of compliance processes, and business continuity planning.
2.2 Supervising associated-person conduct
Overseeing conflicts of interest, personal trading, outside business activities, and private securities transactions by registered persons.
2.3 Compensation practices
Supervising networking arrangements, referral payments, cash/non-cash compensation, and gifts given or received by the firm and its people.
2.4 Product and service oversight
Evaluating new and existing products/services for risk, ensuring associated persons are properly trained, and conducting ongoing due diligence as products evolve.
2.5 Discipline and dispute handling
Taking corrective/disciplinary action for rule violations and properly handling customer complaints, arbitration, and FINRA/SEC disciplinary proceedings.
2.6 Books and records
Establishing policies for creating, retaining, and electronically storing required books and records.
2.7 Financial responsibility and cash management
Supervising net capital reporting, customer asset segregation, short-interest reporting, margin/credit extension rules, and clearing arrangements.
- Function 3 — Supervision of Retail and Institutional Customer-Related Activities21.3%
3.1 Account opening and maintenance
Supervising new-account documentation, Customer Identification Program (CIP)/AML compliance, OFAC screening, privacy of customer data, and identity-theft prevention.
3.2 Communications with the public
Reviewing and approving advertising, social media, correspondence, and public speaking engagements, including Do-Not-Call and filing requirements.
3.3 Transactions, recommendations, and disclosures
Reviewing suitability and best-interest determinations, commission/markup practices, and required customer disclosures, plus escalating red flags in account activity.
- Function 4 — Supervision of Trading and Market Making Activities21.3%
4.1 Order entry, routing, and execution
Supervising trader mandates, market-making/quoting activity, Regulation SHO and Regulation NMS compliance, best execution, and trading halts.
4.2 Trade booking and settlement
Overseeing trade confirmations, disclosures, and buy-in/close-out procedures for unsettled trades.
4.3 Trade reporting compliance
Ensuring executions are reported correctly through the applicable trade reporting facility (e.g., TRACE, ADF, FINRA/Nasdaq TRF) and reviewing Consolidated Audit Trail obligations.
- Function 5 — Supervision of Investment Banking and Research21.3%
5.1 Investment banking policies and activities
Supervising underwriting, private/public offerings, M&A and fairness-opinion work, issuer due diligence, and information-barrier requirements.
5.2 Offering and marketing materials
Reviewing and approving pitch books, prospectus-related disclosures, and other new-issue marketing materials for compliance with offering communication rules.
5.3 Research supervision
Overseeing what qualifies as research, the approval/dissemination process for research reports, and disclosure requirements for analysts making public appearances.
Practice by topic
Try mixed practice questions
Series 24 practice questions with answersCompare the Series 24 with other exams
Practice the Series 24
Start practicing freeConsidering a career as an advisor?
Advisor Training is brought to you by Parsonex, a wealth-management firm. See what building your practice with us looks like.
Explore careers at Parsonex