Series 24 – General Securities Principal Exam
The Series 24 exam — the General Securities Principal Qualification Exam (GP) — assesses the competency of an entry-level principal to perform their job as a principal dependent on their corequisite registrations.
The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a principal, including the rules and statutory provisions applicable to the supervisory management of a general securities broker-dealer.
In addition to the Series 24 exam, candidates must pass the Securities Industry Essentials (SIE) Exam and a representative-level qualification exam, or the Supervisory Analysts Exam (Series 16) exam, to hold an appropriate principal registration. Based on their corequisite qualification(s), candidates will receive the following principal registration(s) upon passing the Series 24 exam:
|Corequisite Exam(s)||Principal Registrations|
|SIE + Series 7||General Securities Principal (GP)|
|SIE + Series 57||Trader Principal (TP)|
|SIE + Series 79||Investment Banking Principal (BP)|
|SIE + Series 82||Private Securities Offerings Principal (PO)|
|SIE + Series 86 and 87||Research Principal (RP)|
|Series 16||Research Principal (RP)|
The Series 24 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the five major job functions of a general securities principal. The table below lists the allocation of exam items for each major job function.
|Major Job Functions||Number of
|(F1) Supervision of Registration of Broker-Dealer and Personnel Management Activities||9|
|(F2) Supervision of General Broker-Dealer Activities||45|
|(F3) Supervision of Retail and Institutional Customer-related Activities||32|
|(F4) Supervision of Trading and Market Making Activities||32|
|(F5) Supervision of Investment Banking and Research||32|
Candidates must be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm to be eligible to take FINRA principal-level qualification exams. For more information on registration requirements, refer to FINRA Rule 1210.
The Series 24 has corequisite exam requirements. Candidates must pass the required corequisite exam(s) to obtain the appropriate principal registration(s).
For more information on the registration process, see Register a New Candidate.
A general securities principal’s supervisory responsibilities are governed by the limitations of their representative-level registrations. Covered supervisory activities include regulatory compliance over:
- Market making
1. What is the difference between the General Securities Sales Supervisor Exams (Series 9 and 10) and the General Securities Principal Exam (Series 24)?
The General Securities Sales Supervisor Exams (Series 9 and 10) are limited principal exams. They qualify an individual to supervise sales activities of a broker-dealer. They satisfy the testing requirements of the NYSE, Cboe, the MSRB, FINRA and Nasdaq. The Series 9 and 10 qualify 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 (DPPs). The General Securities Sales Supervisor Exams do not allow the sales supervisor/branch manager to supervise other areas of a member's securities business, such as underwriting, trading, advertising or overall firm compliance with financial responsibilities.
The Series 24, on the other hand, qualifies a candidate as a general securities principal for FINRA only. 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 and 10, the Series 24 is limited in the products that it covers. The general securities principal qualification does not cover municipal securities or options.
[FINRA Registration Rules 1220(a)(2) and 1220(a)(10)]