Key Takeaways
- Qualifying Exam: The Series 24 licenses individuals to manage broker-dealer operations and compliance.
- Prerequisites: Completion of one of several FINRA representative-level exams is necessary before tackling the Series 24.
- Exam Structure: Comprising 150 scored questions, the Series 24 tests a range of supervisory knowledge.
- Study Recommendation: Given its complexity, rigorous preparation is advised for a successful pass.
How the Series 24 Works
The Series 24, administered by FINRA, is a gateway for finance professionals aiming to ascend into significant managerial roles within the securities industry. Registration for the exam requires sponsorship by a FINRA-affiliated firm, and candidates must have already passed one of several key preliminary exams such as the Series 7 or Series 79.
The Series 24 Exam Detail
Spanning three hours and 45 minutes, the exam challenges candidates with 150 scored and 10 unscored, randomly distributed questions. A minimum of 70% (105 correct answers) is required to pass. To maintain a laser-like focus and streamline testing integrity, only specific electronic calculators provided by the test center and dry-erase boards are allowed during the examination. The registration cost is currently $120 via Form U4.
Special Considerations
The content of the Series 24 exam is intricately subdivided into five principal job functions, each critical to the oversight and compliance of broker-dealer operations. These include:
- Supervision of Registration and Personnel: Focuses on the regulatory landscape and personnel management.
- General Broker-Dealer Activities: Covers a wide range of supervisory responsibilities from policy implementation to control measures.
- Customer-Related Activities: Ensures compliance in activities related to both retail and institutional clients.
- Trading and Market-Making: Oversees trading operations, ensuring adherence to regulatory standards.
- Investment Banking and Research: Involves scrutiny over investment banking and ensures the integrity of research and disclosures.
How Hard Is the Series 24 Exam?
Revered for its difficulty, the Series 24 exam is an intellectual marathon. Success requires not only an understanding of broad regulatory practices and operational procedures but also an ability to apply this knowledge practically in supervisory scenarios. The nature of the exam demands comprehensive preparation and a strategic study plan.
Humorous Take
Imagine the Series 24 as the ‘boss level’ in the video game of your brokerage career, where the bosses are regulations and compliance, and your weapons are pencils, calculators, and your sharp mind!
Related Terms
- Series 7: Often a prerequisite for the Series 24, this is an exam required for general securities representatives.
- FINRA: The Financial Industry Regulatory Authority, the governing body overseeing U.S. broker-dealers.
- Broker-dealer: Firms authorized to buy and sell securities for themselves and on behalf of clients.
Recommended Reading
To gear up for the Series 24, consider sinking your teeth into these illuminating reads:
- “Securities Regulation in a Nutshell” by Thomas Lee Hazen
- “The Encyclopedia of Trading Strategies” by Jeffrey Owen Katz and Donna McCormick
- “Compliance 101” by Debbie Troklus and Sheryl Vacca
Approaching the Series 24 with a blend of seriousness and a dash of humor can make the journey less daunting and more achievable. Good luck, future securities principals!
