Series 14 study guide
Series 14 · Work through your exam, one topic at a time.
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 study guide has 5 sections and about 1,754 words.
01Firm Compliance Program and Regulatory Obligations
A member firm must maintain a written supervisory control system reasonably designed to achieve compliance with securities laws and applicable NYSE and FINRA rules. The central provisions are the supervisory structure requirement (NYSE Rule 342), the supervisory control system requirement (NYSE Rule 301), the annual report on that system (NYSE Rule 351), and the annual CEO certification (FINRA Rule 3130).
363 words, about 2 min02Supervision and Control Procedures
Supervision operates through a documented chain: written supervisory procedures assign each business activity to a designated, qualified supervisor, typically a registered principal. NYSE Rule 342 requires a supervisory structure and written procedures covering account opening, order handling, trading, correspondence and communications, customer complaints, outside activities, private securities transactions, and employee trading.
338 words, about 2 min03Sales Practices and Conduct Standards
Sales-practice questions test whether a recommendation and its communication were fair, suitable, and properly approved. Core duties include know your customer (FINRA Rule 2090), suitability (FINRA Rule 2111), fair dealing (NYSE Rule 435), and truthful, balanced communications (NYSE Rule 472 and FINRA Rule 2210).
340 words, about 2 min04Recordkeeping, Reporting and Privacy Requirements
This domain tests the records a firm must create, how long it keeps them, what it files, and how it protects customer information. Under SEC Rules 17a-3 and 17a-4, firms must make and preserve books and records: blotters, ledgers, order tickets, confirmations, account records, and communications.
351 words, about 2 min05Financial and Operational Compliance
Financial questions center on two separate rules that candidates often merge: Rule 15c3-1 (net capital) and Rule 15c3-3 (customer protection). Net capital measures liquidity and requires a firm to maintain minimum net capital and a ratio of aggregate indebtedness to net capital.
362 words, about 2 min