Series 27 case studies
Series 27 · Put your knowledge to work in context.
The Series 27 - formally the Financial and Operations Principal Qualification Exam (FN) - is FINRA's principal-level qualification exam for the person at a member firm who prepares and maintains the firm's books and records and oversees its financial responsibility compliance. Candidates must be associated with, and sponsored by, a FINRA member firm or other applicable self-regulatory organization member firm, and the exam has no corequisite. The Series 27 case studies are 5 cases and about 2,926 words.
1The Owner's Distribution: Three Ratio Tests and a Bad Receivable
Ridgeway Securities LLC is a carrying broker-dealer with a 250,000 minimum net capital requirement. As of the latest month-end computation its net capital is 318,000 and its aggregate indebtedness is 3,180,000.
530 words, about 3 min2Customer Reserve Shortfall, Monthly Computations, and a PAB Hole
Corrigan Clearing computes its customer reserve as of Friday's close. Credits include 1,850,000 of customer free credit balances and 310,000 of net funds from customer securities sold but not yet settled.
570 words, about 3 min3Late FOCUS, an Unbooked Award, and the 120% Line
Halstead Securities filed its March FOCUS Part II on April 28, well after the filing deadline, reporting net capital of 268,000, aggregate indebtedness of 2,385,200 and a ratio of 8.9:1 against a 250,000 minimum. The owner took a 40,000 distribution in April.
596 words, about 3 min4Cloud Migration Under Rule 17a-4 and a Rule 8210 Request
Trexler Financial, a three-branch broker-dealer, is migrating its email, order tickets, blotters, customer account records and general ledger to a cloud vendor. The vendor's system allows any administrator to overwrite or delete a record, stores a single copy, and offers no third-party download capability.
571 words, about 3 min5An NSF Check, a Cash Account, and a 10:00 A.M. Funding Gap
On Monday morning Coastal Securities' bank returns a 310,000 check from customer Dalton, a long-standing client, marked NSF. Dalton's purchase of 10,000 shares at 31 settled Friday in a cash account, and the shares are already in his account.
659 words, about 3 min