Series 24 study guide
Series 24 · Work through your exam, one topic at a time.
The Series 24 - formally the General Securities Principal Qualification Exam (GP) - is the FINRA qualification exam that assesses whether an entry-level principal can perform the supervisory job that depends on their corequisite registrations. It measures the knowledge needed for the critical functions of a principal, including the rules and statutory provisions that govern supervisory management of a general securities broker-dealer. The Series 24 study guide has 5 sections and about 1,865 words.
01Registration of the Firm and Its Personnel; Personnel Management
The Series 24 principal owns the paper trail proving that the firm and everyone in it are properly registered and supervised. The firm's own registration runs through Form BD (and its amendments); the individual side lives in Web CRD, where Form U4 is filed when a person becomes associated with the member.
386 words, about 2 min02Building, Documenting, and Testing the Supervisory System
Rule 3110 requires a supervisory system, written supervisory procedures (WSPs), and a designated principal responsible for each office of supervisory jurisdiction (OSJ). An OSJ is where one or more supervisors are located or where supervisory duties are performed.
370 words, about 2 min03Recommendations, Communications, and Customer Account Supervision
Recommendations to retail customers run through Regulation Best Interest: the care obligation (understand the product, consider reasonably available alternatives and cost), disclosure, conflict of interest, and compliance obligations. Rule 2111 suitability still governs institutional accounts, and Rule 2090 (know your customer) applies to every account.
355 words, about 2 min04Order Handling, Quotations, Market Making, and Short Sales
Best execution (Rule 5310) is not simply best price: weigh execution likelihood, speed, size, and total cost, and review execution quality regularly and rigorously. Rule 5320 (the 'Manning' rule) bars a firm from trading ahead of a customer limit order at a price at or better than the customer's, subject to narrow exceptions.
384 words, about 2 min05Investment Banking, Offering Practices, and Research Independence
Investment banking supervision sits where Rule 5110 (Corporate Financing), Regulation M, and Rule 2241 (research conflicts) meet. Under Rule 5110, offering documents and underwriting terms must be filed with FINRA Corporate Financing before the offering - commonly at least 15 business days before the effective date, with shorter windows for shelf takedowns - and underwriting compensation must be fair and reasonable.
370 words, about 2 min