The Series 24 exam, also known as the General Securities Principal Qualification Examination, is a securities industry licensing exam in the United States. It is administered by the Financial Industry Regulatory Authority (FINRA) and is designed for individuals who want to become general securities principals.
Here is an overview of the Series 24 exam:
The Series 24 exam is intended to assess the knowledge and competence of individuals who will be supervising and managing the day-to-day activities of registered representatives and their sales practices. General securities principals are responsible for ensuring that their firms and representatives comply with securities industry regulations.
The exam covers a broad range of securities-related regulations and rules, including those related to securities trading, investment banking, underwriting, research, and compliance. General securities principals play a key role in ensuring compliance with industry standards.
The Series 24 exam covers a wide range of topics, including:
Supervision of sales activities and trading.
Regulatory compliance and recordkeeping.
New product development and offering.
Ethics and professional standards.
Securities industry rules and regulations.
Financial responsibility rules.
Anti-money laundering (AML) regulations.
To be eligible to take the Series 24 exam, individuals typically need to have passed one or more prerequisite exams. These often include the Series 7 (General Securities Representative) Series 63 (Uniform Securities Agent State Law Examination) or Series 66 (Uniform Combined State Law Examination).
Candidates preparing for the Series 24 exam typically use study materials and resources provided by various educational providers and often take formal training courses to help them prepare for the exam. These resources include textbooks, practice exams, and online courses.
Passing Score and Duration
The Series 24 exam consists of 150 multiple-choice questions. To pass the exam, candidates must achieve a minimum passing score. The duration of the exam is usually around 3.5 hours.
Passing the Series 24 exam is a significant milestone for individuals seeking to work as general securities principals. These professionals play crucial roles in overseeing the activities of registered representatives and ensuring compliance with regulatory requirements.
Individuals who pass the Series 24 exam often find employment in supervisory or compliance roles within the securities industry. They may work for brokerage firms, investment banks, financial institutions, or other organizations involved in securities trading and investments.
Like other securities industry professionals, general securities principals are required to complete continuing education to stay current with regulatory changes and industry best practices.
Roles and Responsibilities of General Securities Principals
Roles and Responsibilities of General Securities Principals
General securities principals have key responsibilities within their firms, which may include:
- Supervising registered representatives and ensuring they follow industry regulations and ethical standards.
- Managing compliance procedures and recordkeeping to meet regulatory requirements.
- Overseeing trading activities and risk management.
- Reviewing and approving advertising and marketing materials.
- Participating in the development of new products and offerings.
- Implementing and enforcing anti-money laundering (AML) and other anti-fraud measures.
- Handling customer complaints and dispute resolution.
- Maintaining financial responsibility and net capital requirements.
General securities principals are expected to uphold the highest ethical standards in the securities industry. They are responsible for fostering a culture of compliance and ethical behavior within their firms. This includes conducting themselves with integrity and ensuring that their firms and representatives do the same.
Challenges and Regulatory Changes
The securities industry is subject to evolving rules and regulations. General securities principals must stay informed about regulatory changes, as well as industry best practices. Staying up to date is essential to guide their firms in adapting to new requirements and maintaining compliance.
To prepare for the Series 24 exam, individuals typically engage in comprehensive study and review of relevant materials. This may include formal training courses, textbooks, and practice exams. Successful candidates often invest a significant amount of time and effort in their exam preparation.
The Series 24 exam reflects the complex regulatory environment in the securities industry. Candidates are tested on their understanding of federal securities laws, self-regulatory organization (SRO) rules, and state regulations.
Passing the Series 24 exam can open doors to higher-level positions in the securities industry. General securities principals may advance to roles such as compliance officers, branch managers, or other management positions within brokerage firms and financial institutions.
Continuing education is crucial for general securities principals. They must remain informed about changes in the regulatory landscape, market conditions, and best practices. Regular training and development are necessary to fulfill their roles effectively.
General securities principals play a significant role in maintaining the integrity and reputation of the securities industry. Their supervision and compliance oversight help protect investors and ensure fair and transparent markets.
The Financial Industry Regulatory Authority (FINRA) is the primary regulatory authority overseeing the Series 24 exam and the activities of registered securities professionals. FINRA’s mission is to protect investors and ensure market integrity.
Remote Exam Updates
May 11, 2023 NEW
Effective Friday, June 9, 2023, FINRA will be ending the interim accommodation process announced on February 24, 2021, and changing the availability to take exams, other than the SIE, online. To best serve the needs of SIE test takers, we will continue to offer the SIE in both in-person and online administrations to all candidates after June 9, 2023. For all other FINRA exams, we believe we are now at a place where we can address the ongoing impacts of COVID-19 through targeted access to online testing. Individuals who are experiencing underlying health conditions or are immunocompromised and at an increased risk for severe illness and individuals who live more than 150 miles from a test center will be able to request an online administration through the existing testing accommodations process beginning Friday, June 9, 2023.