Series 9 and 10 - General Securities Sales Supervisor Examination

The General Securities Sales Supervisor Qualification Examination (Series 9 and 10) is intended to test a candidate’s knowledge of securities industry rules and certain statutory provisions applicable to the supervision of sales activities at a general securities-oriented branch office. The examination question bank and question allocation is developed through a committee of securities industry professionals with experience in retail securities sales.

Please see NASD Rule 1022(g) General Securities Sales Supervisor for more information.

Content Outline


The Series 9 and 10 Content Outline provides a comprehensive guide to the range of topics 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 consists of two parts that include the eight main job functions of a sales supervisor:

Part 1: Series 10

  • Section 1 — Supervise Associated Persons and Personnel Management Activities
  • Section 2 — Supervise the Opening and Maintenance of Customer Accounts
  • Section 3 — Supervise Sales Practices and General Trading Activities
  • Section 4 — Supervise Communications with the Public

Part 2: Series 9

  • Section 1 — Supervise the Opening and Maintenance of Customer Options Accounts
  • Section 2 — Supervise Sales Practices and General Options Trading Activities
  • Section 3 — Supervise Options Communications
  • Section 4 — Supervise Associated Persons and Personnel Management Activities

Download:
Series 9 and 10 Content Outline

Eligibility


The Series 7 is a prerequisite for this examination.

The candidate must be associated with and sponsored by a FINRA member firm to be eligible to take the Series 9/10 Examination. The FINRA member firm that sponsors the applicant must:

  1. File a Uniform Application for Securities Industry Registration or Transfer (Form U4 PDF 612 KB) in the Central Registration Depository (CRD®).
  2. Request the Series 9/10 (SU, BM, or SM) on the Form U4.

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

Permitted Activities


The Series 9/10 Examination is designed to assess the competency of General Securities Sales Supervisors in the following fields:

  • Sale of Corporate Securities
  • Rights
  • Warrants
  • Closed-End Funds
  • Money Market Funds
  • REITs
  • Asset-Backed Securities
  • Mortgage Backed-Securities (Corporate)
  • Equity Options
  • Options on (corporate) Backed-Securities
  • Mutual Funds
  • Variable Annuities and Variable Life Insurance
  • Government Securities
  • Repos and Certificates of Accrual on Government Securities
  • Municipal Securities and Municipal Fund Securities
  • Direct Participation Programs

Taking the Exam


The Series 9/10 Examination contains 200 multiple-choice questions, covering all of the sections in the outline shown below. Series 9 contains 55 questions on Regulation of Options (section 6) and candidates are allotted 1 1/2 hours of testing time. Series 10 contains 145 questions (sections 1 through 5) and the testing time allotted is 4 hours.

Exam Function   Number of Items
Series 10 1 Supervise Associated Persons and Personnel Management Activities 28
Series 10 2 Supervise the Opening and Maintenance of Customer Accounts 49
Series 10 3 Supervise Sales Practices and General Trading Activities 52
Series 10 4 Supervise Communications with the Public 16
TOTAL     145
Exam Function   Number of Items
Series 9 1 Supervise the Opening and Maintenance of Customer Options Accounts 18
Series 9 2 Supervise Sales Practices and General Options Trading Activities 19
Series 9 3 Supervise Options Communications 5
Series 9 4 Supervise Associated Persons and Personnel Management Activities 13
TOTAL     55

See On the Day of Your Exam for more information.

Key Questions


1. What is the difference between the General Securities Sales Supervisor Exam (Series 9/10) and the General Securities Principal Exam (Series 24)?
The General Securities Sales Supervisor Examination (Series 9/10) is a limited principal examination. It qualifies an individual to supervise sales activities of a broker/dealer. The Series 9/10 qualifies the branch manager to supervise sales activities in corporate securities (equity and debt), investment company products and variable contracts, municipal securities, options, government securities and direct participation programs. The General Securities Sales Supervisor Exam does not allow the sales supervisor/branch manager to supervise other areas of a member's securities business, such as underwriting, trading, or overall firm compliance with financial responsibilities.

The Series 24, on the other hand, qualifies a candidate as a general securities principal for FINRA. By passing the Series 24, the candidate can supervise all areas of the member's investment banking and securities business, such as underwriting, trading and market making, advertising, or overall compliance with financial responsibilities. While the scope of the general securities principal's supervisory authority is broader than the Series 9/10, the Series 24 is limited in the products that it covers. The general securities principal qualification does not cover municipal securities or options.

[NASD Membership and Registration Rules 1022(g) and 1022(a)-Limited Principal General Securities Sales Supervisor and General Securities Principal]

2. Since the Series 9/10, General Securities Sales Supervisor Exam, covers options and municipal securities, upon passing the Series 9/10, can I function as a registered options or municipal securities principal?

No. With the Series 9/10, the branch manager is qualified to supervise sales activities only. The oversight responsibility of the registered options or municipal securities principal exams is broader. In addition to sales supervision, the Registered Options Principal Exam (Series 4) and the Municipal Securities Principal Exam (Series 53) qualify a principal to supervise the member's overall securities business-including but not limited to trading, advertising, and compliance.

3. Must a candidate take both the Series 9 and Series 10 on the same day?

It is up to the candidate. Therefore, the candidate may choose to take both exams on the same day or each part at different sessions. The candidate may also choose which exam to take first. Regardless of when each exam is completed, the General Securities Sales Supervisor registration will not be approved until the candidate passes both exams. Note however that if both exams are not passed within two years of each other, the one taken and passed will be invalidated.

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.