Series 10 study guide
Series 10 · Work through your exam, one topic at a time.
The Series 10 - formally the General Securities Sales Supervisor Examination - is a FINRA qualification exam for individuals who supervise the sales activities of member firm personnel. It is a principal-level credential rather than a product-knowledge credential: where representative-level exams test what a product is and how it works, the Series 10 tests whether you know what a supervisor must approve, review, escalate, document, or refuse. The exam's content is organized around three broad areas: supervision and regulation of associated persons; supervision of customer accounts; and supervision of business conduct and firm operations. That means candidates should expect questions on registration and qualification obligations, opening and handling customer accounts, suitability and disclosure responsibilities, communications with the public, handling of complaints, and the day-to-day operational controls a principal owns. The Series 10 study guide has 3 sections and about 1,045 words.
01Supervision and Regulation of Associated Persons
Every person associated with a member in a capacity involving the investment banking or securities business must be registered under the FINRA By-Laws, and the member files a Uniform Application for Securities Industry Registration or Transfer (Form U4) through CRD. Fingerprints are submitted for covered personnel as required under the Exchange Act.
360 words, about 2 min02Supervision of Customer Accounts
Every new account must capture what a registered representative needs to make a recommendation - investment objective, financial situation, tax status, age, liquidity needs, risk tolerance - and the principal approving the account must actually see it. Under Regulation Best Interest, the care obligation requires the firm to understand the product and the customer and to reasonably conclude the recommendation is in the retail customer's best interest; the conflict-of-interest obligation means compensation cannot drive the recommendation.
344 words, about 2 min03Supervision of Business Conduct and Firm Operations
Rule 2210 sorts communications into correspondence (25 or fewer retail investors), retail communications (more than 25 retail investors), and institutional communications. Retail communications generally require principal pre-approval before use, and certain categories - options, mutual funds, variable products, rankings, new products - must be filed with FINRA Advertising Regulation within 10 business days of first use.
341 words, about 2 min