Series 27 study guide
Series 27 · Work through your exam, one topic at a time.
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. It is the required exam for broker-dealers with a minimum net capital requirement of 250,000 and for municipal securities brokers with a 150,000 minimum under SEC Rule 15c3-1; other broker-dealers may instead take the abbreviated Series 28. The exam consists of 145 multiple-choice items, runs 3 hours and 45 minutes, requires a passing score of 69, and costs $235. The Series 27 study guide has 5 sections and about 1,676 words.
01Financial Reporting
Financial reporting for a broker-dealer centers on Rule 17a-5 and the FOCUS report. You must know which report a firm files, when, and what triggers a notification to FINRA.
298 words, about 1 min02Operations, General Securities Industry Regulations, and Preservation of Books and Records
Operations questions test the trade lifecycle, clearing arrangements, and the reconciliation controls that keep the books accurate. Settlement is T+1 for most U.S.
581 words, about 3 min03Customer Protection
Rule 15c3-3 requires a broker-dealer to safeguard customer securities and customer cash. The two pillars are possession or control of customer securities and the customer reserve formula that funds a special reserve bank account.
263 words, about 1 min04Net Capital
Rule 15c3-1 is the core financial test. You must compute net capital, apply the minimum, and check the aggregate indebtedness (AI) ratio.
270 words, about 1 min05Funding and Cash Management
Funding questions test whether you understand how a broker-dealer finances settlement, margin, and fails without touching customer money. Daily cash projection : forecast settlement obligations, margin calls, and stock loan activity.
264 words, about 1 min