Series 24 Practice Questions on FINRA Rules

📝 Series 24 Practice Questions on FINRA Rules

The Series 24 exam places strong emphasis on understanding and applying FINRA rules related to supervision, communications, compliance, and firm operations. Below are realistic practice questions focused specifically on FINRA regulatory rules—an essential part of your exam preparation.

🔒 Question 1

A firm receives a written customer complaint about unauthorized trading. According to FINRA rules, what is the firm’s supervisory obligation?

A. Respond within 10 business days
B. File a Suspicious Activity Report (SAR)
C. Forward the complaint to FINRA within 30 days
D. Investigate and retain the complaint for 4 years

✅ Correct Answer: D
Explanation: Written complaints must be investigated and retained for four years, and serious complaints may require filing Form U4/U5 amendments or regulatory reports.

📋 Question 2

Which of the following best describes the role of a Principal under FINRA rules?

A. Approving all mutual fund prospectuses
B. Supervising retail investors directly
C. Overseeing associated persons and enforcing firm policies
D. Acting as the firm’s transfer agent

✅ Correct Answer: C
Explanation: Principals are responsible for supervising personnel and ensuring compliance with firm policies and FINRA rules.

📑 Question 3

What is the maximum time allowed to report a significant disciplinary event on Form U4?

A. 10 calendar days
B. 30 calendar days
C. 45 business days
D. By year-end

✅ Correct Answer: B
Explanation: Material disclosures, such as criminal charges or regulatory actions, must be reported on Form U4 within 30 days.

⚖️ Question 4

Under FINRA’s taping rule, which of the following actions is required if a firm becomes subject to the rule?

A. Notify clients of taping policies
B. File a Form BD amendment
C. Begin recording all conversations of registered personnel
D. Conduct random audits quarterly

✅ Correct Answer: C
Explanation: Firms that meet the thresholds for employing reps from expelled firms must tape record all conversations involving securities activities.

📢 Question 5

A retail communication must be approved by a principal before use unless it:

A. Promotes IPOs
B. Is posted on a public website
C. Is only sent to institutional clients
D. Contains performance data

✅ Correct Answer: C
Explanation: Institutional communications do not require pre-use principal approval, but must be supervised and reviewed.

🔍 Question 6

A registered principal must approve which of the following prior to execution?

A. All discretionary trades
B. All unsolicited trades
C. All limit orders
D. All ETF redemptions

✅ Correct Answer: A
Explanation: Discretionary trades must receive prior approval by a designated supervisory principal under FINRA guidelines.

🚀 Continue Your Series 24 Prep

Access full-length practice exams, topic-specific quizzes, and regulatory drills at
👉 finra-exam-mastery.com

✔ Covers all FINRA rules tested on Series 24
✔ Lifetime access and real-world case simulations
✔ Built for managers, principals, and future supervisors

Train like a leader. Pass with confidence.