Series 14 case studies
Series 14 · Put your knowledge to work in context.
The Compliance Officer (COMP) qualification - commonly called the Series 14 - is the FINRA registration category for the individual at a member firm who is responsible for building, running, and documenting the firm's compliance and supervisory program. It is aimed at experienced compliance and supervisory personnel rather than entry-level representatives: candidates are normally sponsored by a member firm, and the material assumes working familiarity with broker-dealer operations, the FINRA rulebook, and the federal securities laws that sit behind it. The Series 14 case studies are 5 cases and about 3,681 words.
1The Producing Branch Manager Who Clears Her Own Tickets
Keystone Securities has 38 registered representatives across three branches. The Rockville office houses 14 reps, and branch manager Dana Okafor is the only registered principal on site; she also generates 55% of the branch's revenue.
716 words, about 4 min2Sixty-Three Trades, All Marked Unsolicited
Rosa Alvarez, 71 and retired, opened a 520,000 account with stated objectives of income and capital preservation; her only income is Social Security and a pension. Over seven months, representative Todd Brill executed 63 trades for her, generating 41,000 in commissions and 22,000 in sales charges: an annualized cost-to-equity of 31% and turnover of 4.2 times.
737 words, about 4 min3WhatsApp, a Late Form U5, and a Ninety-Day Archive
Northline Securities discovered during an internal review that three registered representatives used personal WhatsApp accounts with retail clients throughout a six-week structured-product offering: roughly 2,400 messages, none captured or retained. Separately, a representative resigned March 3 and the firm filed his Form U5 on April 20; a March 10 customer letter alleging $9,000 of unauthorized trading was entered in the complaint register but never placed in the rep's file and never reviewed by a principal; and the firm's cloud email archive permanently deletes messages after 90 days with no write-once, non-erasable storage.
725 words, about 4 min4Two Errors in the Net Capital Computation
Calder Capital is a small introducing broker-dealer with no customer funds or securities. Its financial principal computed net capital of 285,000 at March month-end and reported aggregate indebtedness of 900,000.
753 words, about 4 min5The Vacant CCO Seat and the Certification Nobody Earned
Vantage Brokerage has 120 registered representatives, a December 31 fiscal year end, and a chief compliance officer position that has been vacant since October. The CFO is serving as interim CCO; she holds a Series 27 but not a Series 14 and has no compliance background.
750 words, about 4 min