Series 22 study guide
Series 22 · Work through your exam, one topic at a time.
The Series 22 - formally the Direct Participation Programs Limited Representative Exam (DR) - is a FINRA qualification exam that assesses the competency of an entry-level registered representative to perform the job of a direct participation programs representative. It measures the degree to which a candidate possesses the knowledge needed to perform the critical functions of the role, including the solicitation, purchase and sale of limited partnerships, among other products. The registration suits individuals who will market and service direct participation programs - real estate, oil and gas, and equipment leasing - along with limited partnerships, limited liability companies and S corporations. Candidates must be associated with and sponsored by a FINRA member firm or another applicable self-regulatory organization member firm, and the SIE exam is a corequisite: both exams must be passed to obtain the registration. The Series 22 study guide has 4 sections and about 1,901 words.
01Seeking Business: Prospecting, Licensing, and the Solicitation Rules
Prospects reach a DPP representative through cold calls, seminars, referrals, websites, and social media. Each channel carries a rule.
366 words, about 2 min02Opening Accounts: Financial Profile, Accredited Status, and Suitability
The new-account record is the evidence that a recommendation was suitable. Capture name, address, date of birth, SSN, employment and income, net worth, liquid net worth, tax bracket, investment objective, risk tolerance, time horizon, prior experience with illiquid or tax-advantaged products, and other holdings that create concentration.
370 words, about 2 min03Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records
A DPP is a flow-through vehicle - usually a limited partnership or an LLC taxed as a partnership - in which investors are limited partners and a general partner manages the enterprise and bears unlimited liability. Programs fall into oil and gas (drilling, income, or combination), real estate (existing properties, new construction, raw land), and equipment leasing.
759 words, about 4 min04Purchase Instructions, Processing, and Confirmations
A DPP purchase is completed with a package, not a ticket. The investor signs a subscription agreement, a purchaser questionnaire, and - in private placements - an accredited investor certification or a representation of sophistication.
406 words, about 2 min