The Series 31 exam, administered by FINRA, allows individuals to sell managed futures in the equity market sector. Managed futures invest in various asset classes to reduce overall risk. The exam consists of 45 multiple-choice questions and a minimum score of 70% is required to obtain the license. Study materials are available from financial industry test prep companies. Candidates must submit the U10 form and pay the fee to FINRA, and register with the NFA before acting as a registered futures professional.
Series 31 is the Futures Managed Fund Examination in the equity market sector. The Series 31 exam is administered by the Financial Industry Regulatory Agency (FINRA), a private company created to oversee transactions between brokers, dealers and private investors. A Series 31 license along with mandatory membership in the National Futures Association (NFA), a self-regulated US futures industry organization, allows the holder to sell managed futures. Those wishing to take the exam must already hold a general securities representative license, also known as a Series 7 license. The Series 31 license meets the proficiency requirements for NFA membership.
Futures are contracts to buy or sell a commodity or other financial instrument at an agreed-upon price at a future date. Managed futures are funds that invest in a range of asset classes, such as energy, agriculture and currency. This investment strategy introduces diversification into a fund, thereby reducing overall risk due to the fact that different asset classes tend to balance each other. Some are typically gaining value at the same time that others are declining in response to prevailing economic conditions.
Individuals who take this exam are required to answer 45 multiple-choice questions in 60 minutes that focus on the rules, regulations, and responsibilities associated with selling futures. Topics tested on the exam include general market knowledge, commodity trading advisor and commodity pool operator regulations and disclosures, commissions and regulations, and promotional materials. A Series 31 license is granted to individuals who score a minimum of 70% on the exam.
There are several financial industry test prep companies that provide paid paper and electronic study materials. Some even offer self-guided online study courses. The NFA does not provide Series 31 training courses. However, it does offer a study outline on its website that provides information on the content covered by each of the Futures Industry exams, including the Series 3, Series 30, Series 31, the 32 series and the 34 series.
Once ready to take the exam, a candidate must submit the U10 form and pay the required fee to FINRA via their website. Individuals who meet the NFA’s proficiency requirements by passing the Series 31 exam must then register with the NFA before they can begin to act as a registered futures professional. Those who fail the exam for the first or second time must wait at least 30 days before repeating it. Those who fail a third or later must wait a minimum of 180 days before retaking the exam.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
