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 designated principal is primarily responsible for supervising registered representatives and ensuring compliance with applicable rules.

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

The principal must first conduct a prompt investigation and take appropriate corrective action to address the suitability violation.

Question 3

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

Accepted Answer

Written Supervisory Procedures (WSP)

Answer

FINRA Rule 3110 requires every member firm to establish and maintain Written Supervisory Procedures (WSP) tailored to its business.

Question 4

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

Accepted Answer

Annually

Answer

FINRA Rule 3110 requires at least annual inspections of each OSJ to ensure compliance with applicable rules.

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

Reviewing and approving new account forms is the new account approval supervisory function assigned to a qualified principal.

Series 24 – General Securities Principal Exam Practice Test

Series 24 – General Securities Principal Exam Practice Test

Series 24 – General Securities Principal Exam Supervision & Principal Oversight