Series 26 study guide
Series 26 · Work through your exam, one topic at a time.
The Series 26 - Investment Company and Variable Contracts Products Principal qualification exam is a FINRA principal-level credential for people who supervise, rather than simply sell, investment company and variable contracts business. It sits inside FINRA's qualification exam framework, alongside the entry-level exams such as the Securities Industry Essentials (SIE) and the Series 7, and it is aimed at supervisory personnel, registered principals, and compliance staff at member firms whose representatives distribute mutual funds, other investment company products, and variable contracts. The Series 26 study guide has 4 sections and about 1,416 words.
01Supervision of Investment Company and Variable Contracts Products Activities
A Series 26 principal is the designated supervisor for mutual fund, UIT and variable contracts sales. FINRA Rules 3110 and 3120 require a written supervisory system, written procedures keyed to the firm's actual business, a designated principal responsible for each supervisory area, and annual CEO certification that the system is reasonably designed.
316 words, about 2 min02Investment Company Products
Open-end funds issue redeemable shares continuously at NAV plus any sales charge; closed-end funds sell a fixed number of shares in an offering and then trade on an exchange; unit investment trusts hold a fixed, unmanaged portfolio for a stated term. Principal-level supervision centers on the sales charge mechanics: front-end loads with breakpoints, letters of intent, rights of accumulation, 12b-1 fees, and contingent deferred sales charges on Class B and C shares.
371 words, about 2 min03Variable Contracts Products
A variable annuity or variable life policy is an insurance contract whose value fluctuates with a separate account. Two registrations matter: the contract is registered under the Securities Act of 1933, and the separate account is registered as an investment company under the 1940 Act.
362 words, about 2 min04Personnel Management and Regulatory Compliance
Representatives register through Form U4; terminations are reported on Form U5, generally within 30 days of termination. Material changes - address, disciplinary events, outside business activities - must be amended on Form U4 within 30 days of the event.
367 words, about 2 min