Revisions to the Series 24 Exam

The Series 24 General Securities Principal Examination has recently been revised by FINRA.

The examination continues to consist of 150 multiple choice questions, with an additional 10 pretest questions that are ungraded and do not contribute to your final score. Candidates will answer 160 total questions. The exam is administered over 3 hours and 45 minutes; and in our experience candidates typically can complete the examination comfortably within this time frame. The passing score remains 70%, requiring 105 correct answers of the 150 graded questions to pass.

As part of the revisions to the exam, FINRA has redistributed the subject matter of the tested information, with the revised exam now consisting of 5 functions, as follows:

	Function	Number of Questions	Chapter(s) in book
1	Supervision of Registration of the Broker-Dealer and Personnel Management Activities	9	1
2	Supervision of General Broker-Dealer Activities	45	1, 6, 7
3	Supervision of Retail and Institutional Customer-Related Activities	32	1, 2
4	Supervision of Trading and Market Making Activities	32	4, 5
5	Supervision of Investment Banking and Research	32	1, 3

Each of the primary job functions is covered in chapters as indicated above. Chapter 1 covers a series of FINRA regulations, which are spread across the various job functions.

Newly added to the FINRA Examination Outline are the following topics:

• The Fair and Accurate Credit Transactions Act of 2003 (FACT Act), including the FTC Red Flags Rule. (Chapter 2 in your Series 24 Textbook)
• The Energy Policy and Conservation Act of 1975. (Chapter 3)
• Regulation AB – Asset Backed Securities (Chapter 3)

Our Series 24 Addendum contains additional information about these topics. If you have not received the Series 24 Addendum please email your instructor or material@knopman.com.

http://www.knopman.com/courses/series24/