Series 24 – General Securities Principal Exam Supervision & Principal Oversight

Question 1

Under FINRA rules, who is primarily responsible for supervising the activities of registered representatives?

Accepted Answer

The designated principal

Answer

The compliance officer

Answer

The CEO

Answer

The branch manager

Question 2

A General Securities Principal discovers that a registered rep has been recommending unsuitable investments. What is the principal's FIRST required action?

Accepted Answer

Conduct an investigation and take corrective action

Answer

File a SAR immediately

Answer

Terminate the representative

Answer

Notify the SEC directly

Question 3

Which document outlines the firm's supervisory procedures and is required under FINRA Rule 3110?

Accepted Answer

Written Supervisory Procedures (WSP)

Answer

Form U4

Answer

Annual Compliance Report

Answer

Broker-Dealer Agreement

Question 4

How often must a FINRA member firm conduct an inspection of each office of supervisory jurisdiction (OSJ)?

Accepted Answer

Annually

Answer

Monthly

Answer

Quarterly

Answer

Every two years

Question 5

A principal reviews and approves all new account forms. This activity is an example of which supervisory function?

Accepted Answer

New account approval

Answer

Risk assessment

Answer

Correspondence review

Answer

Order review

Question 6

Under FINRA Rule 3110, which type of office requires direct on-site supervision by a registered principal?

Accepted Answer

Office of Supervisory Jurisdiction (OSJ)

Answer

Non-branch location

Answer

Remote office

Answer

Satellite branch