Mastering the Series 24: The Ultimate Guide to the General Securities Principal Exam
For financial professionals looking to ascend into leadership and supervisory roles within the broker-dealer environment, the Series 24 exam—formally known as the General Securities Principal Qualification Examination—is the definitive milestone. It is often regarded as one of the most challenging hurdles in the securities industry, demanding not just a memory of facts, but a deep understanding of the regulatory framework that governs the financial markets. Our team at Fraser Exam has compiled the most effective strategies and comprehensive insights to help you navigate this rigorous path to certification.
Passing the Series 24 signifies that an individual is qualified to manage or supervise the investment banking or securities business of a member firm. This includes overseeing the activities of registered representatives, managing branch offices, and ensuring compliance with the complex web of rules set forth by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). In this guide, we will break down everything from eligibility requirements to study strategies and career outcomes.
Section 1: The Basics & Eligibility
What is the Series 24 and Who is it For?
The Series 24 is a FINRA-administered exam designed to assess the competency of entry-level General Securities Principals. It is intended for individuals who will supervise the “general securities” business of a firm. This includes areas such as corporate securities, real estate investment trusts, variable annuities, and investment company products. If your career path involves becoming a Chief Compliance Officer (CCO), a branch manager, or a supervisor of investment banking and trading, this certification is non-negotiable.
Prerequisites and Eligibility
Unlike some introductory exams, you cannot take the Series 24 in a vacuum. Candidates must first pass a prerequisite “representative-level” exam. Most candidates fulfill this requirement by passing the Securities Industry Essentials (SIE) exam and the Series 7 (General Securities Representative) exam. However, depending on the specific supervisory role, other combinations such as the Series 79, Series 82, or Series 57 may also serve as valid prerequisites.
Cost and Validity
The current cost to take the exam is $300. This fee is typically paid by the sponsoring firm, though it is important to check your firm’s internal policy. Regarding international validity, while the Series 24 is a U.S.-based certification governed by FINRA, it is recognized globally by firms that operate within the U.S. regulatory jurisdiction. If you are supervising U.S. securities business from an overseas office, you will likely still need this qualification.
Age and Retake Limits
There is no specific age limit for the exam, provided the candidate is old enough to be legally employed in the industry. However, FINRA does enforce a strict retake policy. If you fail the exam, you must wait 30 days before your second attempt. If you fail a second time, another 30-day wait is required. After a third failure, candidates must wait 180 days (six months) before they can attempt the exam again.
| Exam Detail | Information |
|---|---|
| Administering Body | FINRA |
| Exam Cost | $300 |
| Prerequisites | SIE + Series 7 (or 57, 79, 82, etc.) |
| Number of Questions | 150 scored (160 total) |
| Passing Score | 70% |
Section 2: Exam Format & Style
The Series 24 is a computer-based, closed-book examination. You are not permitted to bring any outside materials into the testing room. The exam consists of 160 multiple-choice questions, but only 150 of those questions count toward your final score. The remaining 10 are “pretest” questions that are being evaluated for future exams; they are randomly distributed, so you won’t know which ones they are.
Duration and Timing
Candidates are given 3 hours and 45 minutes (225 minutes) to complete the exam. This might seem like a significant amount of time, but given the complexity of the questions—many of which are situational or “judgment calls”—it averages out to about 1 minute and 24 seconds per question. Time management is a critical factor in success.
Scoring System
The passing score for the Series 24 is 70%. This means you must answer at least 105 of the 150 scored questions correctly. One of the more forgiving aspects of the exam is that there is no negative marking. You are not penalized for incorrect answers, so it is always in your best interest to provide an answer for every question, even if it is an educated guess.
Question Style
The exam has evolved away from simple rote memorization. While you still need to know specific timeframes (e.g., “how many days to report a trade”), many questions focus on “supervisory procedures.” You will be presented with a scenario involving a representative’s conduct and asked what the Principal’s appropriate response should be according to FINRA rules. This requires a nuanced understanding of compliance rather than just knowing the rulebook verbatim.
Section 3: Difficulty & Passing Rates
It is widely accepted in the industry that the Series 24 is significantly more difficult than the Series 7. While the Series 7 covers a broad range of products, the Series 24 focuses on the supervision of those products and the legalities of running a firm. The historical passing rate is not officially published by FINRA, but industry estimates typically place it between 60% and 70% for first-time test-takers.
Why is it so Difficult?
The difficulty lies in the “gray areas.” As a Principal, you are often responsible for determining what is “fair and balanced” in a piece of retail communication or whether a particular trade looks like “market manipulation.” These are subjective concepts that FINRA quantifies through specific regulations. Candidates often struggle with:
- Net Capital Requirements: Understanding the complex formulas that ensure a firm has enough liquid assets.
- Investment Banking and Research: The “Chinese Wall” or information barriers between departments.
- Market Making: The specific rules governing how firms quote and trade securities in the secondary market.
| Exam Function | Weighting (%) | Number of Questions |
|---|---|---|
| Supervision of Registration & Personnel | 6% | 9 |
| Supervision of General Broker-Dealer Activities | 30% | 45 |
| Supervision of Retail & Institutional Customer Activities | 29% | 44 |
| Supervision of Trading and Market Making | 17% | 25 |
| Supervision of Investment Banking and Research | 18% | 27 |
Section 4: Preparation Strategy
Preparation for the Series 24 is a marathon, not a sprint. Most successful candidates dedicate between 80 and 120 hours of study time over a period of 6 to 10 weeks. According to feedback from Fraser Exam users, the depth of the supervisory rules is often the biggest hurdle, and simply reading the textbook once is rarely enough to secure a passing grade.
Study Resources and Methods
While self-study is possible, the vast majority of candidates use a prep course. These courses provide structured “Question Banks” (Q-Banks) that simulate the actual exam environment. We recommend a three-phase approach:
- Phase 1: Deep Reading. Read your primary study manual from cover to cover without worrying about memorization. Focus on understanding the *intent* of the rules.
- Phase 2: Topical Quizzes. Take practice questions specifically on the sections you just read. This reinforces the material and highlights immediate gaps in knowledge.
- Phase 3: Full-Length Simulations. In the two weeks leading up to the exam, take at least 5-7 full-length practice exams to build the mental stamina required for a nearly 4-hour test.
When to Schedule
You should schedule your exam date once you are consistently scoring in the 75% to 80% range on your practice exams. This provides a “buffer” for the added stress and slightly more difficult wording of the actual FINRA exam. You can register on the official FINRA website to open an enrollment window, which typically lasts for 120 days.
| Timeline | Focus Area |
|---|---|
| Weeks 1-3 | Foundational reading and notes on Functions 1 & 2. |
| Weeks 4-6 | Deep dive into Trading, Market Making, and Investment Banking. |
| Weeks 7-8 | Practice exams, identifying weak spots, and memorizing “day” requirements. |
| Final 48 Hours | Reviewing the “Crunch Note” sheets and high-level summaries. |
Section 5: Career & ROI
Passing the Series 24 is a transformative event for a financial career. It moves you from a “producer” role to a “supervisory” role. This transition often comes with increased responsibility, but also significant increases in compensation and job security.
Job Roles and Opportunities
Common titles for Series 24 holders include:
- General Securities Principal: The primary supervisor of a firm’s securities business.
- Chief Compliance Officer (CCO): Responsible for overseeing and managing regulatory compliance within an organization.
- Branch Office Manager (BOM): Managing the day-to-day operations and compliance of a specific branch location.
- Supervisory Analyst: Reviewing research reports and communications for regulatory compliance.
Salary and Recognition
While salaries vary by location and firm size, a professional with a Series 24 license often earns 20% to 50% more than a standard registered representative. In major financial hubs, Principals and CCOs can easily see total compensation packages ranging from $150,000 to over $300,000 annually, depending on their experience and the scale of the firm.
Certification Expiration
Your Series 24 license remains valid as long as you are registered with a FINRA-member firm. If you leave the industry or your registration is terminated, you have a two-year grace period to re-register before the license expires. Additionally, you must comply with Continuing Education (CE) requirements, which include an annual Regulatory Element and a Firm Element.
Section 6: Exam Day Logistics
On the day of your exam, preparation extends beyond the material. You will likely take the exam at a Prometric or Pearson VUE testing center. You must arrive at least 30 minutes early to complete the check-in process, which includes a security screening and ID verification.
What to Bring
You are required to bring a valid, government-issued photo ID (such as a driver’s license or passport). The name on your ID must match the name on your exam registration exactly. You are not allowed to bring your own calculator, scratch paper, or even a watch into the testing room. The testing center will provide you with a basic on-screen calculator and either a small whiteboard or scratch paper, which must be returned at the end of the session.
Receiving Results
One of the most stressful yet rewarding aspects of FINRA exams is that you receive your results immediately. Once you submit your final question and complete a brief survey, your score will appear on the screen. You will also receive a printed performance report before you leave the center, detailing how you performed in each of the five functions. This breakdown is invaluable if you do not pass, as it shows exactly where you need to focus your future studies.
Comprehensive FAQ Section
Is online/remote proctoring available for this exam?
Currently, FINRA offers limited online proctoring for certain exams under specific circumstances, but the majority of Series 24 candidates are required to test in person at a verified testing center. It is best to check the Prometric FINRA page for the most current availability regarding remote testing.
How do I schedule my exam date?
Once your firm has filed a Form U4 and paid the fee, an enrollment window opens for you. You can then schedule your specific date and time through the Prometric or Pearson VUE websites using your individual CRD number.
What is the cancellation or rescheduling policy?
You can generally reschedule or cancel your exam, but doing so within 10 business days of your appointment usually incurs a fee. If you cancel within 2 business days or fail to show up, you will forfeit the entire exam fee.
Am I allowed to bring a calculator?
No. You are strictly prohibited from bringing your own calculator. A digital calculator is built into the testing software, and some centers may 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 away from the computer for a break is subtracted from your total 3 hours and 45 minutes. You will also have to undergo security re-screening before re-entering the room.
What items are strictly prohibited in the testing room?
Prohibited items include cell phones, smartwatches, hats, bags, study materials, and food/drink. Most centers provide lockers for your personal belongings.
How many hours should I study?
Most experts recommend between 80 and 120 hours. Those with extensive compliance experience may need less, while those new to supervision may need more to grasp the nuances of the rules.
Does the exam change every year?
FINRA updates the exam periodically to reflect new regulations and changes in the market. While the core “Functions” stay relatively stable, the specific rules (like recent changes to Regulation Best Interest) are integrated into the question pool regularly.
Do I get my results immediately?
Yes. You will see a “Pass” or “Fail” on the screen immediately after finishing. If you fail, you will receive a numerical score; if you pass, you generally only see the “Pass” status on the official certificate.
If I fail, how soon can I retake the exam?
You must wait 30 days after the first and second attempts. After the third attempt, the waiting period increases to 180 days.
Are accommodations available for candidates with disabilities?
Yes. FINRA provides accommodations in accordance with the Americans with Disabilities Act (ADA). You must submit a formal request and provide documentation before scheduling your exam.
Is the exam available in languages other than English?
The Series 24 is currently only offered in English. Candidates for whom English is a second language may be eligible for additional testing time, but this must be requested in advance.
Can I use scratch paper or a whiteboard?
The testing center will provide you with either scratch paper or a dry-erase whiteboard. You are not allowed to take any notes out of the room with you; all materials must be surrendered to the proctor.
Conclusion
The Series 24 is a rigorous and demanding exam, but it is also one of the most rewarding credentials in the financial services industry. It validates your expertise, elevates your professional standing, and opens doors to executive-level positions that are otherwise out of reach. Success on this exam requires a disciplined study plan, a focus on the logic behind the regulations, and a significant investment of time.
Here at Fraser Exam, we recommend starting your preparation at least 3 months in advance to ensure you have ample time to master the complex topics of net capital and market making. Remember that the exam is not just testing your memory, but your ability to protect the integrity of the markets and the interests of your clients. Many candidates who’ve used Fraser Exam resources report feeling more confident on exam day because they focused on the “why” behind the rules. Stay focused, stay disciplined, and you will find yourself among the elite ranks of General Securities Principals.