Introduction
In the complex world of securities regulation, the Series 39 exam stands as a critical milestone for professionals looking to elevate their careers into management and supervision. Formally known as the Direct Participation Programs Principal Qualification Examination, this assessment is designed to ensure that individuals supervising the activities of a broker-dealer in the direct participation programs (DPP) sector possess the necessary knowledge and ethical grounding to protect investors and maintain market integrity.
The Series 39 is not just another regulatory hurdle; it is a specialized credential that distinguishes leaders within the niche of DPPs, such as limited partnerships, oil and gas programs, and real estate programs. Here at Fraser Exam, we recommend starting your preparation at least 3 months in advance to truly master the supervisory nuances required by FINRA. Whether you are aiming to become a compliance officer or a branch manager, understanding the intricacies of this exam is the first step toward your professional advancement.
Section 1: The Basics & Eligibility
The Series 39 exam is administered by the Financial Industry Regulatory Authority (FINRA). It is specifically intended for individuals who will function as “principals” for a member firm that limits its business to direct participation programs. A principal is someone involved in the management or supervision of the firm’s investment banking or securities business.
Who is it for?
The exam is for professionals who want to supervise the solicitation, purchase, and sale of DPPs. Unlike broader principal exams like the Series 24, the Series 39 is highly specialized, focusing exclusively on the unique regulatory environment of programs that provide for flow-through tax consequences to investors.
Prerequisites and Eligibility
You cannot take the Series 39 in a vacuum. To be eligible, a candidate must first pass a “representative-level” qualification exam. Specifically, you must have passed the Series 22 (Direct Participation Programs Representative Exam). Additionally, candidates must be sponsored by a FINRA member firm or another applicable self-regulatory organization (SRO).
Age and Retake Limits
While there is no specific age limit beyond the requirements for general employment in the industry, there are strict rules regarding retakes. If you do not pass the exam on your first attempt, you must wait 30 days before testing again. If you fail three times in succession, a six-month waiting period is mandatory.
Exam Costs and International Validity
The registration fee for the Series 39 is $265. It is important to note that this fee covers the exam itself and does not include the costs associated with the prerequisite Series 22 or firm-specific registration fees. Regarding international validity, the Series 39 is a U.S.-based certification. While the knowledge of DPP structures is valuable globally, the legal and regulatory components are strictly tied to U.S. federal securities laws and FINRA rules.
| Exam Detail | Information |
|---|---|
| Official Name | Direct Participation Programs Principal Qualification Examination (Series 39) |
| Administering Body | FINRA |
| Prerequisite | Series 22 |
| Exam Cost | $265 |
| Passing Score | 70% |
Section 2: Exam Format & Style
The Series 39 is a computer-based examination. It follows a multiple-choice format, but do not let that fool you into thinking it is simple. The questions are designed to test not just your knowledge of the rules, but your ability to apply those rules in supervisory scenarios.
Exam Duration and Structure
Candidates are given 2 hours and 15 minutes to complete the exam. The test consists of 100 scored questions and an additional 5 unscored “pretest” questions. These pretest questions are randomly distributed throughout the exam and are used by FINRA to evaluate the validity of new questions for future versions of the test. You will not know which questions are unscored, so it is vital to treat every item as if it counts toward your final grade.
Testing Environment
The exam is closed-book. You are not permitted to bring any outside materials, including notes, books, or electronic devices, into the testing room. The exam is administered at Prometric testing centers across the country. The computer system includes a basic on-screen calculator and digital scratchpad, though physical scratch paper and pencils are usually provided by the proctor and must be returned at the end of the session.
Scoring and Negative Marking
The Series 39 uses a straightforward scoring system. There is no negative marking, meaning you are not penalized for incorrect answers. Your score is based solely on the number of correct answers provided. Therefore, it is always in your best interest to answer every question, even if you have to make an educated guess.
Section 3: Difficulty & Passing Rates
The Series 39 is widely considered a “mid-tier” difficulty exam within the FINRA hierarchy. It is more challenging than the Series 22 because it shifts the focus from being a representative (sales-oriented) to being a principal (supervision and compliance-oriented). You are expected to know how to handle problematic scenarios, review communications, and ensure the firm stays within net capital requirements.
Historical Passing Rates
FINRA does not officially publish the exact passing rates for the Series 39, but industry estimates suggest a pass rate between 70% and 75% for first-time test takers. This indicates that while the exam is passable, it requires dedicated study. The passing score is 70%, which means you must correctly answer at least 70 out of the 100 scored questions.
Challenging Sections
Candidates typically struggle most with the Financial Responsibility and Recordkeeping section. This part of the exam involves understanding complex net capital rules and specific SEC record-retention requirements. Additionally, the section on Sales Supervision can be tricky because it requires a deep understanding of what constitutes “fair and balanced” communication in the eyes of regulators.
| Content Area | Percentage of Exam | Number of Questions |
|---|---|---|
| Structure and Regulation of DPPs | 15% | 15 |
| Sales Supervision and Compliance | 50% | 50 |
| Financial Responsibility and Recordkeeping | 35% | 35 |
Section 4: Preparation Strategy
Success on the Series 39 requires a shift in mindset. You must stop thinking like a salesperson and start thinking like a regulator. Many candidates who’ve used Fraser Exam resources report feeling more confident on exam day because they focused on the “why” behind the rules rather than just memorizing facts.
Recommended Study Hours
Most experts recommend between 60 and 80 hours of focused study time. This should be spread over 4 to 6 weeks to allow for better retention of the material. Cramming is rarely effective for principal-level exams because of the nuanced nature of the questions.
Study Resources
While self-study is possible, many candidates opt for a structured prep course. Fraser Exam offers comprehensive study materials tailored for this exam, which include practice question banks that mirror the actual testing environment. Key resources should include:
- A comprehensive textbook updated for current FINRA rules.
- Online practice exams with detailed explanations for every answer.
- Flashcards for memorizing specific timeframes and dollar limits.
- The official FINRA Series 39 Content Outline.
Scheduling Strategy
We recommend scheduling your exam once you are consistently scoring 80% or higher on your practice exams. Schedule the test for a time of day when you are most alert. Many candidates find that taking the exam in the morning helps them avoid the mental fatigue that can set in after a full workday.
| Study Timeline | Focus Area |
|---|---|
| Week 1-2 | Read the textbook cover-to-cover; understand DPP structures. |
| Week 3-4 | Deep dive into Sales Supervision and Financial Responsibility. |
| Week 5 | Take full-length practice exams; identify weak areas. |
| Week 6 | Final review of flashcards and high-weight topics. |
Section 5: Career & ROI
Obtaining the Series 39 license is a prerequisite for several high-level roles within the financial services industry. It signals to employers that you have the technical knowledge and the ethical standing to lead a team and manage firm-wide risk.
Job Roles
Common job titles for Series 39 holders include:
- DPP Principal
- Compliance Officer
- Supervisory Analyst
- Branch Manager
- Operations Manager for a specialized broker-dealer
Salary Impact
While passing the exam does not guarantee an immediate raise, moving into a principal role typically commands a higher salary than a representative role. In many firms, a principal-level position can lead to a salary increase of 15% to 30%, depending on the size of the firm and the level of responsibility. Furthermore, it makes you a much more attractive candidate for senior management positions.
Expiration and Renewal
The Series 39 certification does not “expire” as long as you remain registered with a FINRA member firm. However, if you leave the industry for more than two years, your license will lapse, and you will likely have to retake the exam. To keep the license active, you must complete the Regulatory Element of Continuing Education (CE) annually.
Section 6: Exam Day Logistics
Knowing what to expect on the day of the exam can significantly reduce test-day anxiety. The more prepared you are for the logistics, the more you can focus on the questions themselves.
Identification Requirements
You must bring a valid, government-issued photo ID that includes a signature. Common forms of ID include a driver’s license, passport, or military ID. Ensure the name on your ID matches the name on your exam registration exactly.
Prohibited Items
The testing center is a high-security environment. You will be required to store all personal belongings in a locker. This includes your phone, watch, wallet, and even your car keys. You may be subject to a scan with a metal detector wand before entering the testing room.
Receiving Results
One of the best things about the Series 39 is that you will receive your results immediately after completing the exam. The computer screen will display your score and whether you passed or failed. You will also receive a printed score report from the test center administrator before you leave.
If You Fail
If you do not pass, don’t panic. Many successful principals failed at least one exam on their way up. Use the score report to identify the sections where you performed poorly. This feedback is invaluable for focusing your studies during the 30-day waiting period. Our team at Fraser Exam has compiled the most effective strategies for retake candidates to ensure they bridge the gap on their second attempt.
Comprehensive FAQ Section
Is online/remote proctoring available for this exam?
Currently, FINRA offers limited online proctoring for certain exams under specific circumstances. However, most candidates are still required to take the Series 39 at a physical Prometric testing center. Always check the latest updates on the FINRA website for the most current policy.
What is the cost of the exam, and are there hidden fees?
The base cost is $265. While there aren’t “hidden” fees in the exam itself, you should account for the cost of study materials and the fees your firm may charge for processing your Form U4 registration.
How do I schedule my exam date?
Once your firm has filed your Form U4 and paid the fee, you will receive an “enrollment window” (usually 120 days). You can then visit the Prometric website to select a date, time, and location that works for you.
What is the cancellation or rescheduling policy?
If you reschedule or cancel within 10 business days of your appointment, you may be subject to a fee. If you cancel within 2 business days, you will likely forfeit the entire exam fee.
What forms of identification do I need to bring?
You need one valid, government-issued photo ID. A driver’s license or passport is most common. It must be current (not expired).
Am I allowed to bring a calculator?
No. You are not allowed to bring your own calculator. The testing software includes a functional on-screen calculator, and the testing center can provide a physical basic calculator upon request.
Are bathroom breaks allowed during the exam?
Yes, but the “clock” does not stop. Any time you spend out of the room for a break will be deducted from your total 2-hour and 15-minute testing time. You will also have to undergo security re-screening when you return.
What items are strictly prohibited in the testing room?
Almost everything is prohibited: phones, smartwatches, bags, notes, food, and drinks. Most centers even prohibit wearing bulky hoodies or large jewelry.
What is the passing score?
The passing score is 70%. You must get 70 out of the 100 scored questions correct.
How many hours should I study?
We recommend 60 to 80 hours of dedicated study time for most candidates.
Do I get my results immediately?
Yes. As soon as you hit the “submit” button and complete a brief exit survey, your result will appear on the screen.
If I fail, how soon can I retake the exam?
There is a 30-day waiting period after the first and second failed attempts. After a third failure, the wait increases to 180 days.
Will I receive a breakdown of my score?
Yes, you will receive a score report that shows your performance percentage in each of the three main content areas. This is extremely helpful for identifying weaknesses.
Does this certification expire?
It remains valid as long as you are registered with a firm. If you leave the industry for more than two years, it expires.
Are accommodations available for candidates with disabilities?
Yes, FINRA provides reasonable accommodations under the Americans with Disabilities Act (ADA). You must apply for these accommodations and receive approval before scheduling your exam.
Conclusion
The Series 39 exam is a challenging but rewarding step for any professional dedicated to the direct participation programs sector. It requires a transition from being a practitioner to being a protector of firm standards and investor interests. By mastering the 100 questions on this exam, you prove your readiness to take on the responsibilities of a principal.
According to feedback from Fraser Exam users, the key to success is consistency. Don’t let the technicality of the net capital rules or the nuances of sales supervision overwhelm you. Break the material down, use high-quality practice exams, and give yourself enough time to absorb the concepts. With the right preparation and mindset, you can pass the Series 39 and unlock the next level of your professional journey. Good luck!