Is the Series 24 Exam Difficult?
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🎯 Is the Series 24 Exam Difficult?
The Series 24 Exam—officially called the General Securities Principal Qualification Examination—is widely regarded as one of the more challenging FINRA exams. Its difficulty lies not in tricky math or obscure facts, but in the depth and breadth of supervisory knowledge it demands. Candidates are expected to demonstrate mastery of broker-dealer operations, compliance standards, and regulatory frameworks—through the lens of supervision and management, not just participation.
Here’s a detailed breakdown of why the Series 24 is considered difficult, and how to approach it effectively.
📘 What Makes the Series 24 Exam Challenging?
1. Application Over Memorization
- Unlike earlier exams (like the SIE or Series 6), Series 24 tests how you would apply FINRA, SEC, and MSRB rules in supervisory roles.
- You must think like a principal, making compliance decisions, handling complaints, reviewing communications, and responding to violations.
2. Complex Rule Scenarios
- Expect questions where multiple rules overlap, such as advertising rules, trade reporting, margin regulations, and AML requirements.
- Scenario-based questions often require identifying the best supervisory action, not just knowing what the rule says.
3. Volume of Material
- The exam covers five major functions, including registration, customer account supervision, trading oversight, and investment banking activities.
- Detailed knowledge of FINRA Rules, SEC Rules, MSRB Rules, and key regulations like Regulation M, Reg SHO, and the Securities Act of 1933 is required.
4. Time Pressure
- 150 questions in 3 hours and 45 minutes.
- Many candidates report running out of time because the questions require careful reading and analysis.
📊 Pass Rate Insights
- Unofficial estimates suggest a pass rate of around 70%–75%.
- First-time takers who complete a structured study program (including at least two full-length simulations) generally have higher success rates.
- Retakes often improve scores significantly after targeted review of weak areas.
🧠 Key Areas Where Candidates Struggle
| Topic Area | Common Pitfalls |
|---|---|
| Supervision of Registration Activities | Missing key nuances about who must register and when |
| Customer Account Supervision | Confusing discretionary vs. non-discretionary rules |
| Communications with the Public | Misunderstanding approval requirements for materials |
| Trade Reporting and Trading Violations | Overlooking tight reporting deadlines |
| Investment Banking Supervision | Complex scenarios involving Regulation M and public offerings |
📝 Sample Question
A registered rep distributes an email about a new investment fund to 30 prospective clients without principal approval. Which rule has likely been violated?
A. AML compliance
B. Retail communication rules
C. Correspondence rules
D. Customer complaint handling
✅ Correct Answer: B. Retail communication rules
Explanation: Communications sent to more than 25 retail investors within 30 calendar days are classified as retail communications and must be pre-approved by a principal.
🚀 How to Prepare Effectively
✅ Master the Role of a Principal: Think “What should a supervisor do?” in every scenario.
✅ Use Scenario-Based Practice Exams: Train your decision-making skills, not just recall.
✅ Review Regulatory Filing and Reporting Timelines: Know critical deadlines for SARs, U4/U5 amendments, trade reporting, etc.
✅ Memorize Key Communications Rules: Advertising, retail communications, correspondence categories, and approval requirements.
✅ Simulate Full-Length Exams: Practice completing 150 questions under timed conditions.
👉 Access Complete Series 24 Study Guides and Simulated Exams
Prepare with focus. Think like a principal. Pass with confidence.