Series 24 Leadership-Based Questions

Series 24 Leadership-Based Questions – What to Expect

The Series 24 General Securities Principal Exam goes far beyond product knowledge. It tests your ability to supervise, lead, and make regulatory decisions as a principal. That means you’ll face many leadership-based questions—scenarios where you must act as a decision-maker, not just a rule follower.

Below are examples of Series 24 leadership-style questions, with detailed explanations to help you think like a principal.

🧑‍💼 1. Supervisory Action – Escalation Decision

Question:
A registered representative repeatedly ignores firm policy requiring pre-approval of outside business activities. What is your best course of action as the supervisor?

A. Give the rep a verbal warning
B. Suspend the rep pending internal investigation
C. File a U5 immediately with FINRA
D. Report the incident to the client

✅ Correct Answer: B

As a principal, you must act decisively to protect the firm and ensure compliance. Suspension pending investigation shows strong leadership and risk management.

📊 2. Branch Oversight – Delegation & Supervision

Question:
You delegate daily compliance duties to a branch manager. Which of the following best reflects your ongoing supervisory obligation?

A. No further action is needed once duties are delegated
B. You must still verify and document that the branch manager fulfills duties
C. Only the CCO must supervise branch activity
D. Branch managers are fully responsible for all compliance tasks

✅ Correct Answer: B

Delegating duties does not remove supervisory responsibility. You must demonstrate reasonable supervision, including oversight of the person you’ve delegated to.

⚠️ 3. Responding to Red Flags

Question:
A pattern of unusually high variable annuity exchanges (1035 exchanges) is identified in one office. As the supervising principal, what should you do first?

A. Inform FINRA immediately
B. Review transaction records and speak with the registered rep
C. Terminate the rep’s access to annuity products
D. Wait until client complaints are received

✅ Correct Answer: B

Principals must investigate red flags promptly, gather facts, and assess whether the activity is inappropriate before escalating to regulators.

📋 4. Policy Enforcement – Gray Areas

Question:
A rep hosts weekly investment “education sessions” that promote proprietary products but avoids making direct sales pitches. What is your best action as the supervisor?

A. Ignore it—no sales were made
B. Require all sessions be pre-approved and reviewed
C. Encourage more sessions to boost sales
D. File a public advertising report with FINRA

✅ Correct Answer: B

Principals are responsible for ensuring that all public-facing communication complies with firm policy and FINRA regulations—even if it’s “educational.”

👩‍🏫 5. Training & Documentation

Question:
Your firm implements a new policy on handling customer complaints. What must you do as a Series 24 principal?

A. Update the policy manual but no additional action is needed
B. Email the update to all reps
C. Conduct training, document attendance, and enforce compliance
D. Leave policy implementation to the CCO

✅ Correct Answer: C

Leadership means driving training, implementation, and documentation of compliance procedures.

🚀 Be the Principal. Think Like a Leader.

Success on the Series 24 requires more than knowing rules—it demands the ability to supervise, investigate, enforce, and lead. Our complete Series 24 prep course offers:

• Real-world scenario drills
• Leadership-focused question banks
• Advanced simulations for supervisory judgment

👉 Prepare to Lead at Finra Exam Mastery