Series 24 Exam Questions for Supervisory Roles

🧾 Series 24 Exam Questions for Supervisory Roles
📘 Targeted Practice for Principal-Level Responsibility and Oversight

The Series 24 exam—also known as the General Securities Principal Exam—is designed to test your readiness to supervise activities of registered representatives and manage broker-dealer operations. To help you prepare for principal-level decision-making, here are 8 advanced Series 24 exam-style questions focused on supervision, compliance, and firm-level policies.

🧠 Series 24 Practice Questions: Supervisory Roles

1. A general securities principal is responsible for approving all the following EXCEPT:

A) Options trades entered by a registered rep
B) Retail communications with a recommendation
C) AML (anti-money laundering) program testing
D) New account openings

✅ Answer: C
🔎 Explanation: AML testing must be conducted by someone independent of the program (e.g., internal audit or compliance), not a general securities principal.

2. A broker-dealer must conduct an annual compliance meeting with all registered reps. The meeting must:

A) Be recorded and submitted to FINRA
B) Allow participants to ask questions
C) Include a formal test
D) Occur in person only

✅ Answer: B
🔎 Explanation: FINRA Rule 3110 requires that the annual compliance meeting be interactive—participants must be able to ask questions, whether the session is in person or virtual.

3. Which of the following must a principal review and approve prior to use?

A) Internal emails between reps
B) A third-party research report
C) Correspondence sent to fewer than 25 retail clients
D) A market commentary posted on a public blog

✅ Answer: D
🔎 Explanation: Public blog posts fall under retail communication and must be approved by a principal before first use.

4. A registered rep uses social media to promote investment services. What is the principal’s responsibility?

A) Approve all content post-publication
B) Supervise the rep’s activity under FINRA’s recordkeeping rules
C) Ensure posts are deleted after 30 days
D) Submit each post to FINRA within 10 days

✅ Answer: B
🔎 Explanation: Social media usage is subject to supervisory and recordkeeping rules. Principals must ensure content is monitored and retained.

5. A firm’s branch office manager fails to escalate multiple red flags regarding a rep’s excessive trading. What supervisory failure is this?

A) Deficient net capital
B) Inadequate WSPs
C) Failure to supervise
D) Recordkeeping violation

✅ Answer: C
🔎 Explanation: Not acting on warning signs is a classic example of a failure to supervise, a serious violation under FINRA rules.

6. A general securities principal is reviewing discretionary accounts. Which of the following is TRUE?

A) Principal approval is only needed annually
B) Trades must be approved by a principal before execution
C) All discretionary trades must be approved promptly
D) Principals do not review trades in these accounts

✅ Answer: C
🔎 Explanation: Discretionary trades must be approved promptly, typically by end of day, to ensure they comply with suitability and trading regulations.

7. Which of the following can only be supervised by a municipal securities principal (Series 53), not a Series 24?

A) Equity trading desks
B) Mutual fund distribution
C) Municipal bond underwriting
D) Options sales

✅ Answer: C
🔎 Explanation: Supervision of municipal securities activities requires a Series 53, not a Series 24.

8. A new representative fails their annual firm element training. What must the principal do?

A) Report the failure to FINRA
B) Prohibit them from executing trades
C) Document the deficiency and assign corrective education
D) Terminate the representative immediately

✅ Answer: C
🔎 Explanation: Training failures require remedial action, which must be documented and followed up—not immediate termination unless other violations occur.

🚀 How to Use These Practice Questions

• Review explanations carefully to understand regulatory logic
• Focus on interpreting procedural expectations and real-world supervisory scenarios
• Pair with your firm’s Written Supervisory Procedures (WSPs) to reinforce context

🎓 Get more full-length Series 24 simulations, flashcards, and topic-focused modules at:
👉 https://finra-exam-mastery.com

Train like a principal. Think like a regulator. Pass with authority.