Series 23 - General Securities Principal Exam - Sales Supervisor (GP)

The Series 23—the General Securities Principal Qualification Examination-Sales Supervisor Module (GP)—assesses the competency of an entry-level general securities principal candidate to perform his or her job.

The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a general securities principal, including the rules and statutory provisions applicable to the supervisory management of a general securities broker-dealer.

The Series 23 exam is an alternative to taking the Series 24 exam, and is appropriate for a candidate who is registered as a general securities sales supervisor (SU) or a Branch Office Manager (BM) and wants to register as general securities principal.

The Series 23 consists of 100 scored questions. Candidates are given two hours and 30 minutes to complete the exam. The passing score is 70 percent.

Please see NASD Rule 1022(a) General Securities Principal for more information.

Content Outline

The Series 23 - Content Outline provides a comprehensive guide to the range of subjects covered on the exam, as well as the depth of knowledge required. It includes sample questions to acquaint candidates with the types of multiple-choice questions on the exam.

The outline is comprised of the five major job functions of a Series 23 principal:

  • Function 1 - Supervision of registration of broker-dealer and personnel management activities
  • Function 2 - Supervision of general broker-dealer activities
  • Function 3 - Supervision of retail and institutional customer-related activities
  • Function 4 - Supervision of trading and market-making activities
  • Function 5 - Supervision of investment banking and research

Download: Series 23 - Content Outline

Eligibility

The Series 23 has a prerequisite exam requirement. Candidates must pass one of the following exams to hold the registration.

Please see Register a New Candidate for more information on the registration process.

Permitted Activities

A general securities principal’s supervisory responsibilities are governed by the limitations of his or her representative level registrations. Covered supervisory activities include regulatory compliance over the following.

  • Trading
  • Market making
  • Underwriting
  • Advertising

Taking the Exam

The table below lists the allocation of exam questions for each major job function of a general securities principal:

Section Number of Questions
Function 1 - Supervision of Investment Banking, Underwriting Activities and Research 30
Function 2 - Supervision of Trading and Market Making Activities 24
Function 3 - Supervision of Brokerage Office Operations 12
Function 4 - Sales Supervision and General Supervision of Employees 23
Function 5 - Compliance with Financial Responsibility Rules 11
TOTAL 100

Learn more about exam protocols and logistics here: On the Day of Your Exam.

Using Reference Materials

The test administrator will provide whiteboard/dry erase marker and basic electronic calculators to the candidates, which must be returned to the test center administrator at the end of the testing session. Some test questions involve calculations. Only the provided calculators may be used during the examination.

The examination may contain questions that require the use of exhibits (e.g., charts, graphs, tables). If so, the questions will indicate when to refer to an exhibit.

Candidates are not permitted to bring any reference materials to testing sessions. Severe penalties are imposed on candidates who cheat or attempt to cheat on FINRA administered examinations.

To learn more about logistics and protocols for your exam day, please see On The Day of Your Exam.