Series 24

Posted on by user

Series 24 (General Securities Principal Exam)

Key takeaways

  • The Series 24 license authorizes holders to supervise and manage general broker‑dealer activities, including trading, market‑making, underwriting, advertising, and compliance.
  • Eligibility generally requires the Securities Industry Essentials (SIE) exam plus one representative‑level qualification (for example, Series 7, 57, 79, 82, or 86/87); other combinations may apply.
  • The exam has 150 scored questions (plus 10 unscored), a 70% passing score (105/150), and a time limit of 3 hours 45 minutes.
  • The test covers five principal supervisory job functions and is widely regarded as difficult, requiring significant preparation.
  • Candidates must be sponsored by a FINRA member firm (or other applicable firm) to register; a Form U4 and exam fee are required.

What the Series 24 allows you to do

The Series 24, officially the General Securities Principal Qualification Examination, qualifies an individual to act as a principal who supervises and manages branch activities at a broker‑dealer. Supervision responsibilities typically include:
* Regulatory compliance for trading and market‑making
* Oversight of underwriting and investment‑banking activities
* Supervision of advertising and public communications
* Personnel registration and disciplinary actions
* Development and enforcement of firm policies and written supervisory procedures

Eligibility and prerequisites

To qualify for principal registration, candidates typically must pass:
* The Securities Industry Essentials (SIE) exam, and
* One representative‑level exam such as Series 7, 57, 79, 82, or 86/87.

There are alternative pathways in some cases (for example, combinations involving Series 16), so specific prerequisites can vary by the principal role sought. A FINRA member firm or other applicable firm must sponsor the candidate, submit a Form U4, and pay the examination fee to register the candidate.

Exam format and logistics

  • Total questions: 160 (150 scored + 10 unscored, with unscored items distributed randomly)
  • Passing score: 70% (105 correct out of 150 scored questions)
  • Time allowed: 3 hours, 45 minutes
  • Materials provided: electronic calculator, dry‑erase board and markers
  • Prohibited: other calculators, reference materials, or study aids in the exam room

Content outline (by job function)

The exam content is organized around five principal supervisory job functions. Approximate scored question counts are noted:

  1. Supervision of registration of the broker‑dealer and personnel management (about 9 questions)
  2. Regulatory requirements, registration types, hiring and registration of associated persons, maintenance of registrations.
  3. Supervision of general broker‑dealer activities (about 45 questions)
  4. Firm policies, written supervisory procedures, internal controls, compensation supervision, product/service delivery, disciplinary processes.
  5. Supervision of retail and institutional customer‑related activities (about 32 questions)
  6. Account opening and maintenance, transaction and recommendation oversight, disclosures, public communications.
  7. Supervision of trading and market‑making activities (about 32 questions)
  8. Order entry, routing, execution, trade booking and settlement, execution compliance.
  9. Supervision of investment banking and research (about 32 questions)
  10. Policies and controls for investment banking and research, review/approval of investor disclosures and marketing materials.

Difficulty and pass rate

FINRA does not publish an official pass rate for the Series 24. Anecdotal consensus among exam takers and industry forums is that it is one of the more challenging securities exams, largely because it requires mastery across a broad set of supervisory topics. Most candidates benefit from a structured study plan, prep courses, and ample study time.

Special considerations

  • FINRA’s public materials do not specify provisions for extra examination time; the exam is structured to allow time for review of answers. Candidates with documented disabilities should consult their sponsoring firm and FINRA for information about testing accommodations.
  • A candidate’s exact pathway to principal registration can depend on prior qualifications and the specific principal role being sought (for example, Investment Banking Principal vs. Research Principal).

Bottom line

The Series 24 is the principal qualification for supervising general broker‑dealer operations. It requires sponsorship, prior representative‑level qualification(s), and a thorough understanding of supervisory responsibilities across trading, customer accounts, compliance, and investment banking. Because of its breadth and difficulty, thorough preparation is essential.