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The Series 14 exam is required for compliance officers at NYSE brokerage firms supervising 10 or more compliance workers. It covers topics such as trading, MSRB rules, and customer account supervision. FINRA administers the exam and regulates securities firms in the US to ensure fairness and honesty.
Series 14 is an exam that must be taken by compliance officers working at New York Stock Exchange (NYSE) brokerage firms in the United States. Anyone who supervises 10 or more people who perform compliance tasks must pass the Series 14 exam to ensure that they have the appropriate knowledge and training to carry out their job functions. The Financial Industry Regulatory Authority (FINRA) ensures that all brokerage firm compliance officers in the US comply with this requirement.
This exam consists of 110 multiple-choice questions with a three-hour time limit. A score of 70 percent is required to pass the exam, but it can be retaken if you fail. A fee is charged to an individual each time the Series 14 exam is taken. The exam is administered at testing sites in most medium-sized and large cities in the United States, and there are no prerequisites for taking it.
The creators of the Series 14 exam assume that examinees have a basic understanding of brokerage firm activities and securities regulations, but experience in specific topics is needed to pass the exam. Topics covered in Series 14 include trading in the primary and secondary markets, MSRB rules, financial responsibility, sales supervision, customer account supervision, and compliance. There are various resources on the Internet that provide education and training materials for this test, and there are books that even contain practice tests.
A section of Series 14 covers MSRB rules. The United States Congress created the MSRB in 1975 to oversee companies in the municipal securities industry. Maintains rules to protect investors along with state and local governments and other entities whose credit is backed by municipal securities. The MSRB rules were created to prevent manipulation and fraud in the marketplace and to assist the mechanisms of an open market system. For example, the MSRB has policies for dealers regarding standardization of trade confirmations and settlement of securities transactions, as well as record-keeping requirements for securities firms.
FINRA is a private organization that reports to the Securities Exchange Commission (SEC) and regulates securities firms, including all brokerage firms, in the US. The organization makes sure companies in the securities industry are fair and honest. In addition to administering the Series 14 exam, it also provides education and registration for employees and businesses, writes rules, and enforces federal laws. FINRA protects and advocates for investors through the education of individual investors and through market regulation of US stock markets, such as the NYSE.
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