📜 Series 24 Rule-Focused Practice Exam

The Series 24 exam—also known as the General Securities Principal Qualification Exam—is designed to test your ability to supervise and manage broker-dealer activities. A large portion of the exam focuses on rules, regulations, and compliance procedures. This rule-focused practice exam will help you prepare for that exact challenge.

📘 Exam Format

• Total Questions: 10
• Topic Focus: FINRA rules, supervisory procedures, registration, reporting, communications
• Time Limit: 20 minutes
• Passing Benchmark: 7/10 correct

✅ Question 1

A registered principal is reviewing advertising materials. Under FINRA Rule 2210, which of the following requires filing with FINRA?

A. Internal training materials
B. Retail communication for mutual funds including performance data
C. Correspondence to fewer than 25 retail clients
D. Institutional communication only to broker-dealers

Correct Answer: B
Explanation: Retail communications that promote investment products and include performance data must be filed with FINRA.

✅ Question 2

Under FINRA rules, which of the following actions requires principal approval prior to use?

A. Institutional communication
B. Retail communication on options
C. Correspondence to a client about an account update
D. Internal procedures manual

Correct Answer: B
Explanation: Retail communications involving options must be approved by a principal before being used.

✅ Question 3

Which rule governs anti-money laundering (AML) compliance procedures?

A. FINRA Rule 3310
B. SEC Rule 10b-5
C. FINRA Rule 4510
D. MSRB Rule G-37

Correct Answer: A
Explanation: FINRA Rule 3310 requires broker-dealers to develop and implement AML compliance programs.

✅ Question 4

How often must a firm conduct a supervisory control review under FINRA Rule 3120?

A. Monthly
B. Quarterly
C. Annually
D. Every two years

Correct Answer: C
Explanation: Supervisory control procedures must be tested and reviewed annually.

✅ Question 5

Under FINRA Rule 4512, customer account records must include which of the following?

A. Credit score
B. Marital status
C. Investment objectives
D. Social media profiles

Correct Answer: C
Explanation: Investment objectives are a required part of new account documentation.

✅ Question 6

Form U5 must be filed within how many days of a representative’s termination?

A. 10 calendar days
B. 15 business days
C. 30 calendar days
D. 60 business days

Correct Answer: C
Explanation: Firms must file Form U5 within 30 calendar days of termination.

✅ Question 7

Which of the following requires prompt reporting to FINRA?

A. Opening a branch office
B. A customer complaint involving theft
C. Registration of a new representative
D. Publishing new advertising materials

Correct Answer: B
Explanation: Allegations of theft or fraud must be promptly reported to FINRA.

✅ Question 8

A representative has a disciplinary action disclosed on Form U4. This information must be:

A. Verified only at hiring
B. Disclosed to clients verbally
C. Updated within 30 days
D. Updated only during annual reviews

Correct Answer: C
Explanation: Form U4 must be updated within 30 days of any reportable event.

✅ Question 9

Under SEC Regulation SP, firms must provide customers with privacy notices:

A. Only upon request
B. Annually and at account opening
C. Quarterly
D. Every five years

Correct Answer: B
Explanation: Regulation SP requires firms to provide initial and annual privacy notices.

✅ Question 10

Which of the following communications does NOT require principal review?

A. Blog post viewed by retail investors
B. Internal memo to back-office staff
C. Marketing email to 500 retail clients
D. Product flyer for seminars

Correct Answer: B
Explanation: Internal communications not used with the public do not require principal review.

📊 Scoring

• 9–10 correct: Outstanding – Rule mastery confirmed
• 7–8 correct: On track – Minor gaps to fill
• 5–6 correct: Caution – Review rule applications
• Below 5: High risk – Revisit core FINRA/SEC rules

🎯 Prepare with complete rule-based simulations, detailed explanations, and Series 24 exam tools at
👉 finra-exam-mastery.com