The Series 24 license allows securities industry professionals to manage a brokerage office or branch. The exam covers investment banking, trading, brokerage operations, sales, and compliance. Candidates must have completed a previous exam and be sponsored by a FINRA member. FINRA regulates the securities industry and oversees registered representatives. The exam tests knowledge of fiduciary duties and requires skills in managing staff and customer demands.
Series 24 is the main general securities license of the Financial Industry Regulatory Authority (FINRA). It also refers to the securities industry professional licensing exam of the same name, which is administered by FINRA. The Series 24 license qualifies a securities industry professional to supervise or manage a securities brokerage office or branch. The qualifying exam is divided into five sections: investment banking supervision, underwriting and research; supervision of trading and market making activities; supervision of brokerage office operations; sales and general supervision of employees; and compliance with financial responsibility rules. It consists of 155 questions, 150 of which are marked, and lasts a maximum of 3-1/2 hours with a 70% minimum score to pass.
Candidates must already have completed a Series 7, Series 17, Series 37, Series 38, Series 62, or Series 82 exam in order to register for the Series 24 licensing exam. They must also be sponsored by a member of FINRA. In general, sponsoring, preparing for, and obtaining one or more FINRA licenses are part of the training that new broker-dealer employees receive when they are hired at FINRA member brokerage firms. Those who pass their exams must register their licenses with the FINRA member stockbroker who employs them and oversees their activities.
Formerly known as the National Association of Securities Dealers (NASD), FINRA is a self-regulatory organization of the financial securities industry, the largest of its kind in the country. Created in 2007 after approval by the US Securities and Exchange Commission, it is responsible for the regulatory and compliance oversight of some 4,700 brokerage firms, 167,000 branches and 637,000 registered securities representatives. Any person employed by a FINRA member firm and engaged in its securities business must register with FINRA; This includes partners, officers, directors, branch managers, department supervisors, and vendors.
One of the primary goals of the Series 24 is to thoroughly test a candidate’s knowledge of fiduciary duties when it comes to trading client accounts. However, the typical day-to-day administrative activities and responsibilities of a General Securities Principal extend beyond knowing the rules and regulations governing the sales, trading, and brokerage operations of securities. A key skill is the ability to deal professionally with customer demands and disagreements. Others often include the ability to manage staff and reconcile disagreements and differences of opinion between brokers and management, as well as between brokers themselves on issues such as client coverage, commissions and expenses.
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