Series 24 FINRA Rule Reference Sheet
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
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π§Ύ Series 24 FINRA Rule Reference Sheet
π Quick Guide to the Most Tested FINRA Rules for the Series 24 Exam
The Series 24 exam tests your ability to supervise broker-dealer operations, enforce compliance, and interpret FINRA rules. Below is a condensed FINRA rule sheet tailored for Series 24 candidates, highlighting key rules, thresholds, timelines, and disciplinary triggersβorganized for fast memorization and real-world recall.
π I. Registration & Continuing Education
Rule | Requirement |
---|---|
Rule 3110 β Supervision | Firms must establish written supervisory procedures (WSPs). |
Rule 3110(a) β Supervision | Assign supervisor to each registered rep. |
Rule 3120 β Internal Controls | Annual testing + CEO certification of compliance. |
Rule 3130 β CEO Certification | Annual certification of firm’s compliance and supervisory system. |
Rule 1230(b)(6) β CE Requirements | Firm Element (annual), Regulatory Element (within 120 days). |
π II. Communications with the Public
Rule | Definition & Timing |
---|---|
Rule 2210 β Communications | Categorized into Retail, Correspondence, and Institutional. |
Retail Communication | >25 retail investors in 30 days β may require FINRA filing. |
Pre-Use Approval | Principal must approve Retail and Correspondence. |
Rule 2210(d) β Content Standards | Must be fair, balanced, and not misleading. |
π III. Supervisory Systems & Inspections
Rule | Details |
---|---|
Rule 3110(c) β Office Inspections | Branch offices: annual or every 3 years based on risk level. |
Rule 3110(b) β WSP Requirements | Must cover supervisory structure, escalation process, and review policies. |
Rule 3110(d) β Customer Complaints | Must retain and escalate serious allegations to compliance. |
π IV. Outside Activities & Conflicts
Rule | Obligation |
---|---|
Rule 3270 β Outside Business | Must provide written notice to firm (pre-approval not required). |
Rule 3280 β Private Securities Transactions | Require firm pre-approval and supervision. |
π V. Anti-Money Laundering (AML)
Rule | Requirements |
---|---|
Rule 3310 β AML Compliance | Must designate AML Officer, develop policies, test annually. |
SAR Filing Timeline | Within 30 days of detecting suspicious activity. |
Currency Transaction Reports (CTR) | For transactions >$10,000, filed within 15 days. |
π VI. New Account Rules
Requirement | Timeline/Standard |
---|---|
Customer Identification Program (CIP) | Name, DOB, SSN, and address must be verified before account opening. |
Rule 4512 β Account Records | Must maintain and update customer information periodically. |
Rule 2090 β Know Your Customer | Requires understanding of clientβs investment profile. |
π VII. Trading & Market Rules
Rule | Supervisory Note |
---|---|
Rule 5210 β Publication of Quotes | No fictitious or misleading quotes. |
Rule 5310 β Best Execution | Must seek the best price under prevailing market conditions. |
Rule 2010 β Standards of Honor | Broad ethics rule: high standards of commercial honor. |
π VIII. Disciplinary & Reporting Requirements
Rule | Trigger/Requirement |
---|---|
Rule 4530 β Reporting | Firms must report violations, civil litigation, and settlements. |
Rule 8210 β Information Request | Must comply fully with FINRA document and testimony requests. |
Statutory Disqualification | Felony or certain misdemeanor convictions within past 10 years. |
π IX. Fingerprinting & Background Checks
Rule | Requirement |
---|---|
SEC Rule 17f-2 | Must fingerprint most associated persons; retained for inspection. |
Rule 3110(e) β Background Checks | Must verify applicantβs U4 disclosures and conduct background screening. |
π X. Financial and Net Capital Rules
Category | Threshold |
---|---|
Net Capital Requirement | Varies: Introducing BD = $5,000β$50,000, Market Maker = $100,000+ |
Books and Records (Rule 17a-3/4) | Most records kept 3β6 years, some lifetime (e.g., articles of incorporation). |
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