What is the Series 24 Exam and License?

If you’re looking to move beyond selling investments and into a leadership role in the financial industry, the Series 24 license is a key step. This credential is designed for professionals who want to supervise teams, oversee transactions and ensure firms stay compliant with complex regulations. Understanding what the Series 24 exam involves can help you decide whether it’s the right move for advancing your career in finance.

What Is the Series 24 Exam and License?

The Series 24 exam, also known as the General Securities Principal Qualification Exam, is a licensing test required for financial professionals who want to supervise securities activities at broker-dealers. Administered by the Financial Industry Regulatory Authority (FINRA), the license allows individuals to oversee sales, trading and compliance functions within a firm. It is typically pursued by those moving into management or supervisory roles in the financial services industry.

The Series 24 exam emphasizes the rules and responsibilities involved in supervising registered representatives. This includes ensuring that sales practices, communications and transactions comply with regulatory standards. Professionals with this license are responsible for maintaining proper oversight and protecting investors from misconduct.

Candidates are tested on a wide range of topics, including equities, debt securities, options and investment company products. The exam also covers areas such as firm operations, record keeping and regulatory reporting. This broad scope reflects the diverse responsibilities of a general securities principal.

What’s in the Series 24 Exam?

SmartAsset: What Is the Series 24 Exam and License?

There are 150 questions and candidates have three hours and 45 minutes to complete the exam. Exam takers need at least a 70% to pass, or 105 correct answers. There are five separate sections of the exam, including:

Supervision of Registration of the Broker-Dealer and Personnel Management Activities: Candidates must differentiate between Registered Investment Advisers (RIA) and broker-dealers, as well as their required registrations. Theyl’ll also need to know registration requirements, exemptions and hiring requirements for specific positions.
Supervision of General Broker-Dealer Activities: Candidates develop and implement a firm’s policies and procedures. Also, they turn to regulatory requirements to manage conflicts of interest, develop and deliver broker-dealer products, and manage a firm’s disciplinary actions, books and records.
Superising Retail and Institutional Customer-Related Activities: Candidates handle new account openings, maintenance of existing accounts, review public-facing communications, review securities transactions and make sure the appropriate disclosures are made.
Supervision of Trading and Market Making Activities: Candidates, must detail supervision of order entry and execution, confirm bookkeeping and settlements of trades are accurate and go over executions to check for compliance.
Supervision of Investment Banking and Research: Finally, candidates develop and maintain the firm’s policies, procedures and controls. Also, the supervise related investment banking activities, review investor disclosure materials, and supervise research.

The computerized exam includes 10 random, unscored questions throughout the entire test. That means the total number of questions is 160, but 10 of them don’t count towards your final score.

You’ll have access to a whiteboard with dry-erase markers as well as simple electronic calculators. You won’t be allowed to take any of your personal belongings with you and reference materials are prohibited. FINRA has a content outline you can use to study for the Series 24 Exam. The exam fee is $120.

Click Your State to Get Matched With Financial Advisors That Serve Your Area

Choose your state and answer some questions to get matched with up to three fiduciary advisors that serve your area.

Eligibility for the Series 24 Exam

To take the test, you’ll need to be associated with and sponsored by a FINRA member firm or a self-regulatory organization. You must also first qualify as one of the following:

General Securities Representative (Series 7)
United Kingdom Module of Series 7 (Series 17)
Canada Module of Series 7 (Series 37 or 38)
Securities Trader Representative (Series 57)
Corporate Securities Limited Representative (Series 62)
Investment Banking Representative (Series 79)
Private Securities Offerings Representative (Series 82)

Bottom Line

The Series 24 exam and license are essential for financial professionals who want to move into supervisory roles within broker-dealers. By focusing on compliance, oversight and regulatory standards, the credential helps ensure firms operate responsibly and protect investors. For those advancing their careers in the securities industry, earning the Series 24 can be a key step toward leadership and greater professional responsibility.

Exam Prep Tips

While FINRA’s exam outline is one way to prepare for the Series 24 exam, it’s not the only preparation you should take. You might want to consult the expertise of someone who’s taken the exam before. You could ask around at your firm or others in the industry. Or you could ask another advisor or financial planner. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If the Series 24 Exam isn’t a need for your financial track, you still might want to look into other certifications. There’s the Series 99 exam, plus a handful of financial certifications you may obtain. Not all financial certifications, licenses, and exams are the same. Many have different eligibility requirements to qualify. Before taking any test, review the requirements and if you’re a good candidate. Since each certification has a different set of requirements and skills, consider ones that best suit your needs.