Series 28 study plan
Series 28 · Give each week a clear focus.
8 weeks · About 7 hours per week
Net Capital
Define net capital and distinguish it from net worth, equity, and excess net capital
Classify assets and liabilities as allowable or non-allowable and build a working classification checklist
Compute net capital for three given firm fact patterns using the aggregate indebtedness method
Compute the aggregate indebtedness ratio and determine whether each firm meets its minimum requirement
Reconstruct the net capital rule's core formula from memory without notes
Your checkpoint
Completed net capital worksheet for 5 firm scenarios (assets, liabilities, non-allowable adjustments, haircuts), scored at 100% against an answer key built from your own study notes
Net Capital & Customer Protection - Reserve and Segregation Requirements
Differentiate minimum net capital requirements by business type (carrying customer accounts, introducing, market making, broker-dealer only)
Apply haircut percentages to representative positions and explain why each haircut exists
Calculate early-warning and notification thresholds and identify when a firm must notify its regulator
Explain subordination agreements and how they affect net capital treatment
Identify when a firm may not withdraw capital and how equity withdrawals are restricted
Your checkpoint
One-page decision tree mapping firm type to minimum net capital, ratio requirement, and notification trigger, validated by correctly answering 20 drill questions
Customer Protection - Reserve and Segregation Requirements
Reproduce the customer reserve formula line by line and label each credit and debit item
Compute the reserve deposit requirement for margin and cash-only customer accounts
Distinguish customer fully paid securities from firm securities and determine segregation obligations
Explain the role and permitted uses of the special reserve bank account
Classify free credit balances and identify which balances must be segregated
Your checkpoint
Reserve formula calculation worked end-to-end for 3 accounts (cash, margin, mixed) with the required deposit computed and documented
Customer Protection - Reserve and Segregation Requirements & Net Capital
Solve multi-step problems that combine reserve computation with net capital impact
Identify common compliance failures in segregation and describe the control that prevents each
Recompute missed items from weeks 1-3 from scratch without reference material
Time yourself on computational items and reduce average per-question time
Your checkpoint
Timed 40-question mixed net capital and reserve assessment completed under exam pacing with a score of 80% or higher
Financial Reporting
Read a broker-dealer balance sheet and identify the accounts that feed the net capital computation
Map each required financial statement and supporting schedule to its regulatory purpose
Explain how the income statement and equity movements reconcile into reported net capital
Distinguish interim versus annual reporting obligations and note the filing triggers you must memorize
Trace one hypothetical transaction set from journal entry through to reported net capital
Your checkpoint
Written reconciliation showing how 6 sample transactions flow from the financial statements into reported net capital, with each line labeled to its disclosure requirement
Recordkeeping and Internal Controls
List the required books and records categories and state a retention period for each
Explain the characteristics of an adequate internal control structure for a small broker-dealer
Identify the supervision and review obligations attached to recordkeeping, including who must sign off
Detect red flags that indicate recordkeeping or control breakdowns in a described fact pattern
Describe the consequences of failing to make or preserve required records
Your checkpoint
Records-retention matrix covering at least 15 record types with retention period, format requirement, and owner, self-quizzed to 90% recall
Operations, Supervision, and Financial Responsibility & Financial Reporting
Explain the supervisory structure required of a firm and assign responsibilities to each role
Outline the elements of a financial responsibility program: capital monitoring, early warning, and escalation
Integrate reporting, capital, and control concepts when answering scenario questions
Practice written-response style answers that cite the governing principle before the conclusion
Audit your error log and re-teach your three weakest concepts
Your checkpoint
One-page integrated supervision and financial responsibility checklist plus a re-teach summary of the three weakest concepts with corrected practice items
Financial Reporting & Net Capital & Customer Protection - Reserve and Segregation Requirements & Recordkeeping and Internal Controls & Operations, Supervision, and Financial Responsibility
Take two full-length practice exams under timed conditions
Categorize every miss by domain and root cause (formula, definition, misread, unknown)
Re-drill every missed item until each is answered correctly twice
Review formula sheets and thresholds daily for the final five days
Simulate exam-day pacing and confirm your time budget per question
Your checkpoint
Error log closed out: every missed item re-answered correctly twice, with final practice scores recorded and a one-page formula and threshold sheet finalized
Milestones
Week 2: Compute net capital, the aggregate indebtedness ratio, and the notification threshold for any firm scenario from a blank page without notes
Week 4: Score 80% or higher on the timed mixed net capital and reserve assessment, with no formula lookups
Week 6: Recall at least 13 of 15 record types with correct retention periods on a closed-book self-quiz
Week 8: Average 85% or higher across two full-length timed practice exams, with no domain below 75%