Series 24 Supervision Guidelines Chart
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🧾 Series 24 Supervision Guidelines Chart
📘 Essential Oversight Responsibilities for Registered Principals
The Series 24 exam qualifies individuals to supervise broker-dealer personnel and activities. To pass the exam and perform the role effectively, you must understand who supervises what, reporting lines, and recordkeeping requirements. Below is a streamlined Supervision Guidelines Chart to help you remember core responsibilities for the Series 24 exam and real-world application.
📊 1. General Principal Responsibilities
| Responsibility | Details |
|---|---|
| Supervising Branch Offices | Must designate a registered branch manager (Series 9/10 or 24) |
| Supervising Registered Representatives | Ensuring reps are properly licensed, trained, and in compliance |
| Reviewing and Approving Advertising | Must review retail communications, including social media and emails |
| Hiring and Background Checks | Complete Form U4, fingerprinting, and background checks |
| Handling Complaints | Must be reviewed, logged, and retained for 4 years |
| Annual Compliance Meeting | Required annually for all registered employees |
🧾 2. Key Supervision Areas by Activity
| Activity | Supervised By | Special Notes |
|---|---|---|
| Options Transactions | Series 4 or Series 9/10 | Principal must approve accounts and trades |
| Municipal Securities | Series 53 | Required to supervise muni-related activity |
| Investment Company/Variable Products | Series 26 | Applies to mutual funds and annuities |
| General Securities Sales | Series 24 | Covers corporate securities, ETFs, IPOs |
| Compliance and Operations | Series 24 or 27 | Depending on scope of duties |
📂 3. Documentation and Recordkeeping
| Record Type | Retention Period | Supervision Rule |
|---|---|---|
| Customer Complaints | 4 years | Must be in written format, with supervisor review |
| Trade Confirmations & Blotters | 3 years | Firm must keep daily activity records |
| Communications (Retail/Institutional) | 3 years | Must be approved prior to first use (retail) |
| New Account Forms | 6 years after account is closed | Must be approved by a principal before first trade |
| Written Supervisory Procedures (WSP) | Until updated + 3 years | Firm must have WSP reviewed annually |
🚨 4. Heightened Supervision Triggers
| Condition | Supervision Required |
|---|---|
| Rep with multiple disclosures | Assign to heightened supervision |
| Breakaway broker starting own firm | Closely monitor activity and advertising |
| New product line (crypto, complex options) | Must update WSP and training procedures |
✅ 5. Key Compliance Requirements
| Requirement | Series 24 Responsibility |
|---|---|
| AML (Anti-Money Laundering) Training | Ensure training within 12 months, ongoing |
| Outside Business Activities (OBA) | Must be disclosed and approved |
| Private Securities Transactions | Written approval required from firm |
| Political Contributions (MSRB G-37) | Supervisors must prevent “pay-to-play” |
📅 6. Testing & Reporting Timelines
| Action | Timeframe |
|---|---|
| File Form U5 after termination | Within 30 days |
| Respond to regulatory request | Promptly or within time specified |
| Annual Certification of WSP | Must be completed once per calendar year |
🎓 Tip for the Exam:
Focus on supervisory boundaries—know what a Series 24 can and cannot approve. For example, a Series 24 cannot supervise options unless they also hold a Series 4 or 9/10.
💼 Need full Series 24 practice exams, case simulations, and checklists?
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Stay compliant. Stay sharp. Supervise with confidence.