The Series 24, officially the General Securities Principal Qualification Examination, is a FINRA-administered qualification that permits the holder to act as a general securities principal at a broker‑dealer. A general securities principal supervises and manages branch activities and is responsible for compliance and oversight in areas such as trading and market making, underwriting, advertising, and customer account supervision.
Key Takeaways
– Purpose: Qualifies you to supervise general securities activities at a broker‑dealer.
– Administrator: Financial Industry Regulatory Authority (FINRA).
– Prerequisites: Typically the Securities Industry Essentials (SIE) exam plus a representative-level qualification (one of Series 7, 57, 79, 82, or 86/87) — or other specific paths for certain principal types. Employer sponsorship (Form U4) is required to register.
– Format: 150 scored questions + 10 unscored pretest questions; 3 hours 45 minutes total.
– Passing score: 70% (105/150 scored questions correct).
– Cost: Exam fee charged when registered (see FINRA for current fee schedule).
– Testing rules: Only FINRA‑provided calculators and dry‑erase boards are allowed; no outside materials.
How the Series 24 Works
– Role covered: The license authorizes supervisory responsibilities over many broker‑dealer functions, including:
• Supervising trading and market‑making activities
• Oversight of underwriting and due diligence for offerings
• Approval and review of advertising and communications with the public
• Supervision of customer accounts and account documentation
• Ensuring regulatory compliance and escalation/reporting
– Qualification path: To be eligible for a principal registration you normally must:
1) Pass the SIE (if not already qualified via other paths),
2) Pass an appropriate representative-level exam (for the business area you will supervise), and
3) Pass the Series 24.
Note: There are limited alternative paths for certain principal roles (for example, Series 16 in research), so confirm the required combination with your sponsoring firm and FINRA guidance.
The Series 24 Exam — Facts and Structure
– Total items: 160 multiple‑choice items on test form; 150 are scored and 10 are unscored pretest items mixed in.
– Passing standard: 70% of scored items correct (i.e., 105 of 150).
– Time allotted: 3 hours and 45 minutes.
– Administration: Computer‑based test at a qualified testing center. Employers register candidates by filing Form U4 for principal registration and paying the exam fee.
– Testing aids: FINRA provides electronic calculators and dry‑erase boards/markers. No personal calculators, books, or notes allowed.
– Content outline: FINRA groups the exam content around the principal’s core job functions; review FINRA’s Series 24 content outline to plan studying.
Special Considerations
– Sponsorship: You cannot sit for the exam as an unaffiliated individual. A FINRA member firm (or another applicable self‑regulatory organization) must sponsor you and file Form U4.
– Unscored items: The 10 unscored “pretest” questions are mixed in and cannot be distinguished from scored questions. Treat every item seriously.
– Accommodations: FINRA does provide test accommodations for qualifying candidates with disabilities; documentation and advance approval are required — start the request process early.
How Hard Is the Series 24 Exam?
– General consensus: The Series 24 is widely regarded as one of the more difficult FINRA qualification exams because it tests supervisory judgment across many topic areas and requires both breadth and depth of knowledge.
– Preparation needed: Many candidates report needing a substantial study commitment — structured courses, many practice questions, and careful review of FINRA rules and supervisory procedures. Depending on background and experience, plan for significant preparation time (commonly multiple weeks to a few months).
What Is the Series 24 Pass Rate?
– No official pass rate: FINRA does not publish a pass rate for the Series 24. Anecdotal reports from exam takers and training providers indicate the exam is challenging, and many candidates take prep courses and multiple practice exams before attempting it. Use official content outlines and reputable prep providers rather than relying on forum pass‑rate claims.
What Are the Requirements to Get Additional Time on the Series 24 Exam?
– ADA and testing accommodations: FINRA permits testing accommodations (including additional time) for candidates with documented disabilities when appropriate. Requirements typically include:
• Submitting a formal request for accommodations to FINRA (or the testing vendor) well before the scheduled exam date;
• Providing professional documentation (e.g., from a licensed clinician) that verifies the disability and specifies recommended accommodations; and
• Receiving explicit approval before the appointment.
– Practical step: Contact your firm’s compliance/training department or FINRA’s testing accommodations guidance as early as possible to learn the precise forms and documentation needed.
Do I Need a Series 79 If I Have a Series 24?
– Short answer: Not necessarily — but likely yes for supervising investment banking activities.
– Explanation: The Series 24 grants broad supervisory authority, but FINRA expects principals to also hold or be associated with appropriate representative registrations (or have passed the equivalent representative exams) for the specific business lines they supervise. The Series 79 is the Investment Banking Representative exam. If you intend to supervise investment‑banking representatives or approve underwriting and M&A activities, your firm will generally require you to hold (or be qualified by) the Series 79 (and SIE) or otherwise demonstrate the required representative-level competency. If your supervisory duties do not include investment banking, Series 79 may not be required. Confirm the exact requirements with your sponsoring firm and FINRA rules.
Practical Step‑by‑Step: How to Prepare, Register, and Pass the Series 24
1. Confirm the requirement and sponsorship
• Talk to your employer’s compliance or HR/training team to confirm the principal role you’re pursuing and sponsorship. They must file Form U4 to register you for the exam.
2. Verify prerequisite exams
• Ensure you have the SIE and the required representative-level qualification for the area you will supervise (or the alternative path that applies to your principal role).
3. Review the official content outline
• Download and study FINRA’s Series 24 exam content outline — it shows weighted topic areas and sample tasks. Use this to create a study plan.
4. Choose study materials and a course
• Use reputable prep providers (Kaplan, STC, ExamFX, etc.), FINRA resources, and up‑to‑date textbooks. Look for providers that offer question banks and simulated exams.
5. Build a study schedule
• Allocate time for: learning core rules and supervisory procedures, doing question drills, and taking simulated full‑length exams. Many candidates benefit from a structured 6–12 week plan depending on prior experience.
6. Practice with real‑format timed exams
• Simulate the full 3h45m test environment multiple times. Review missed questions thoroughly and understand the rule or principle behind each mistake.
7. Address weak areas and supervisory judgement
• Spend extra time on topics with heavy weights (refer to FINRA’s outline) and on applying supervisory judgment — many Series 24 questions are scenario‑based.
8. Final review and exam day logistics
• Confirm testing center location, required ID, and what FINRA provides in the testing room. Arrive early and rest well the night before.
9. Request accommodations early if needed
• If you need test accommodations, submit the request with documentation well before scheduling.
Study tips
– Focus on supervisory rules and procedures rather than memorizing isolated facts.
– Learn where to find the rules (handy references) and how to apply them in workplace scenarios.
– Frequent practice with multiple‑choice, scenario‑based questions is crucial.
The Bottom Line
The Series 24 is the principal qualification that allows a registered person to supervise general securities activities at a broker‑dealer. It is broad in scope and considered challenging because it requires supervisory knowledge across trading, underwriting, compliance, advertising, and account supervision. Candidates must be sponsored by a FINRA member firm, satisfy prerequisite exam requirements, and prepare thoroughly using FINRA’s content outline and reputable study materials. If you will supervise a particular business line (for example, investment banking), you’ll typically also need the representative‑level qualification for that line (such as Series 79) in addition to the Series 24.
Sources and Further Reading
– FINRA — General Securities Principal Qualification Examination (Series 24) content outline and candidate information:
– FINRA — Changes to Qualification Examination Fees (for current fee information):
– Investopedia — Series 24 overview
(For the most current rules, fees, accommodation procedures and any updates to exam content or format, check FINRA’s official pages and consult your firm’s compliance department before registering.)
Additional sections
Common day‑to‑day duties and examples
– Approving branch advertising and retail communications
• Example: A rep wants to run an email campaign touting “guaranteed returns” on a municipal fund. As a general securities principal, you must review the copy for misleading claims, ensure proper disclosures (risks, past performance rules), and either approve edits or reject the material. You’ll document your review and keep a record for the firm’s compliance files. (FINRA rules and NASD/SEC guidance are relevant here.) [FINRA, Investopedia]
– Supervising trading and market‑making activities
• Example: A trader in your office executes a large block that moves the market and raises customer complaint risk. You must determine whether the trade complied with best execution/supervision policies, whether supervisory surveillance systems flagged the activity, and whether escalation (to compliance/legal) or remediation is required.
– Overseeing underwriting and capital markets activity
• Example: During a small‑cap IPO project your firm underwriting, your role includes ensuring the syndicate follows quiet period restrictions, that allocation and allocation disclosure are consistent with policy, and that conflicts of interest are disclosed.
– Handling firm and representative registration and discipline
• Example: When a rep has a customer complaint alleging unauthorized trading, you coordinate the internal review, interview the rep, collect trade blotters and account statements, and decide if a corrective action (restitution, amended disclosures, or escalating to FINRA/SEC reporting) is required.
Practical step‑by‑step: How to register and sit for the Series 24
1. Confirm prerequisites
• You must be associated with a FINRA member firm or other applicable self‑regulatory organization and meet the representative‑level prerequisite: SIE + one representative exam (Series 7, 57, 79, 82, or 86/87), OR in some specialty routes, a combination involving Series 16 for research principal registration. Confirm which representative exam fits the principal registration you want. [FINRA, Investopedia]
2. Employer sponsorship and Form U4
• Your sponsoring firm files or updates your Form U4 (Uniform Application for Securities Industry Registration or Transfer) to register you for principal status; that triggers the ability to schedule the Series 24. The firm pays the exam fee (historically $120; verify current fee on FINRA). [FINRA]
3. Schedule the exam
• Once registered, schedule your appointment with the test center/provider (FINRA historically uses Prometric). Note testing center rules, ID requirements, and arrival time.
4. Prepare required documents
• Bring required photo ID and any documentation your testing provider requires. FINRA/Prometric provide guidance on permitted items (e.g., calculators supplied).
5. On exam day
• You’ll have 3 hours 45 minutes for 160 questions (150 scored + 10 unscored). Electronic calculator and dry‑erase board materials are supplied. Passing requires 70% (105/150). [FINRA, Investopedia]
6. After the exam
• If you pass, your firm will complete the necessary registration filings and you’ll be authorized for principal activities in your scope. If you fail, read FINRA’s retake policies and your firm will re‑register you when ready.
Study plan and timelines (practical)
– Recommended overall study time: vary by background. For an experienced rep moving into supervision, 80–150 hours is a common range; for less experienced candidates, plan 150–250 hours. Adjust upward if you’re also taking prerequisite representative exams.
– An 8‑ to 12‑week study block (part‑time) is typical:
• Weeks 1–2: Read the FINRA content outline (job functions) and gather study materials. Make a topic list and baseline notes.
• Weeks 3–6: Deep study — read chapter by chapter, take notes, make flashcards on rules, forms, and definitions. Do topic quizzes daily.
• Weeks 7–8: Take full‑length timed practice exams, review missed questions and weak areas. Revisit regulatory memoranda and key FINRA/SEC rules.
• Final week: Light review and rest. Arrive to exam well‑rested.
Study resources (types)
– FINRA content outline and rule texts: Start with the FINRA Series 24 exam outline and reference the FINRA rules cited. [FINRA]
– Commercial prep providers: Kaplan, Securities Training Corporation (STC), ExamFX and others provide textbooks, video lectures, and large practice question banks focused on Series 24.
– Practice exams: Take multiple timed, full‑length practice tests to build stamina and identify weak areas.
– Study groups/mentors: Shadow existing principals at your firm or join a study group to discuss real scenarios and interpretations.
Sample-style practice questions (illustrative, not from the exam)
1) A registered representative wants to place a testimonial from a satisfied retail customer on the firm’s website. As a general securities principal, what is your primary supervisory concern?
• Answer: Ensure the testimonial is not misleading, that proper disclosures are included, and that the use complies with FINRA rules on testimonials/endorsements and advertising. Reject or amend material that omits risks or implies guarantees.
• Why: Advertising and retail communications require principal approval and must avoid false/misleading statements.
2) During supervision you discover a pattern of late trade confirmations for several reps. What is your immediate supervisory action?
• Answer: Investigate the root cause (systems issue, staffing, training), determine whether customers were harmed, escalate as needed, implement remediation/training and update written supervisory procedures (WSPs) to prevent recurrence.
• Why: Ongoing surveillance and adherence to WSPs are primary responsibilities; remediation and documentation are required.
Special considerations and FAQs
How hard is the Series 24?
– Most candidates and many prep providers consider Series 24 challenging because it tests broad supervisory knowledge and requires synthesis of rules across multiple business areas (trading, advertising, compliance, underwriting). Success usually requires methodical studying and real‑world supervisory understanding. (Investopedia; test‑taker community commentary)
Is there a published pass rate?
– FINRA does not publish pass rates for the Series 24. Anecdotally, many candidates report it is more difficult than representative exams because of the breadth and application emphasis. Use multiple practice tests to gauge readiness.
What about extra time or accommodations?
– FINRA provides reasonable testing accommodations for qualified individuals with disabilities. Candidates who need accommodations must follow FINRA’s accommodation request process and provide appropriate documentation. Check FINRA’s current accommodations guidance and deadlines for submission. Your sponsoring firm or testing provider can assist in initiating the request. (Check FINRA for the latest procedures.)
Do I still need a Series 79 if I have Series 24?
– It depends on the principal role you seek. The Series 24 allows broad general securities principal supervision, but qualifying for certain principal registrations (e.g., investment banking principal) requires a representative qualification as a prerequisite. For example, SIE + Series 79 qualifies a candidate for Investment Banking Principal upon passing Series 24 (or other combinations as noted). Confirm the exact prerequisites for the principal registration you need with FINRA and your firm. [FINRA, Investopedia]
Retake policy, scheduling, and fees (practical notes)
– Fee and scheduling details change over time — consult FINRA for current exam fees and Prometric (or current provider) for scheduling details.
– Retake waiting periods exist. If you fail, speak with your sponsoring firm about re‑registration and recommended study time before retaking.
Best practices on exam day
– Bring two forms of acceptable ID as required by the test provider.
– Arrive early; late arrival may prevent testing.
– Use the provided dry‑erase board to diagram scenarios and plan time per question (~1.4 minutes per question to finish with time to review).
– Flag difficult items and return to them after completing the easier questions.
– Stay calm — read questions carefully; Series 24 emphasizes supervisory judgment and rule application.
Example career paths and how Series 24 fits
– Branch Manager: Often requires Series 24 to supervise representatives and branch activities.
– Compliance Officer / Chief Compliance Officer: Series 24 helps but additional qualifications and experience may be needed.
– Operations or Trading Supervisor: Series 24 supports supervisory authority for trading and settlement functions.
– Investment Banking Principal (BP): Requires representative prerequisite (e.g., Series 79) plus passing Series 24 to supervise investment banking functions.
Concluding summary
The Series 24 (General Securities Principal) is a supervisory qualification that enables holders to approve communications, supervise trading and underwriting, manage branch operations, and enforce firm compliance with applicable securities rules. It requires employer sponsorship and representative/prerequisite qualifications (SIE + a representative exam, or special routes). The exam tests broad supervisory knowledge via 150 scored questions (plus 10 pretest questions) in 3 hours 45 minutes, with a 70% passing standard. Because of its breadth and emphasis on supervisory judgment, preparation should be structured, comprehensive, and include substantial practice testing and application to real‑world scenarios. Use FINRA’s content outlines, approved commercial prep materials, and firm mentors to form a study plan, and allow sufficient time to master both rules and practical supervisory responsibilities.
Sources and further reading
– Financial Industry Regulatory Authority (FINRA). “General Securities Principal Qualification Examination (Series 24).” (Exam content and logistics)
– Financial Industry Regulatory Authority (FINRA). “Series 24 – General Securities Principal Exam.” (Guidance and content outline)
– Financial Industry Regulatory Authority (FINRA). “Changes to Qualification Examination Fees.” (Fee structure updates)
– Investopedia. “Series 24.” (Overview and practical considerations)
Editor’s note: The following topics are reserved for upcoming updates and will be expanded with detailed examples and datasets.