Series 24 vs Series 26: Compliance and Supervision
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🧾 Series 24 vs Series 26: Compliance and Supervision
📘 Which Supervisory License Is Right for Your Financial Services Career?
If you’re pursuing a leadership role in a broker-dealer, understanding the difference between the Series 24 and Series 26 licenses is crucial. Both are FINRA supervisory exams, but they prepare you for very different responsibilities in terms of scope, authority, and product oversight.
Here’s a full comparison to help you choose the right path.
🎯 1. What Is the Series 24 License?
The Series 24 is the General Securities Principal exam. It qualifies individuals to supervise and manage all aspects of a broker-dealer’s securities business, except for certain limited areas like municipal securities or options (which require additional licenses).
🔹 Key Authority:
- Overseeing sales practices, trading desks, compliance, and new accounts
- Supervising general securities representatives (Series 7 holders)
- Reviewing and approving advertising, transactions, and branch activities
🔹 Typical Roles:
- Branch Manager
- Compliance Officer
- Operations Supervisor
- Training Manager at full-service broker-dealers
🔹 Prerequisite:
- Must hold Series 7 prior to sitting for the Series 24 exam
🎯 2. What Is the Series 26 License?
The Series 26 is the Investment Company and Variable Contracts Products Principal exam. It’s a more limited supervisory license, authorizing you to supervise the sales of mutual funds, 529 plans, and variable annuities.
🔹 Key Authority:
- Supervising Series 6 reps
- Managing sales activities related to packaged products
- Limited to investment company and insurance-related products
🔹 Typical Roles:
- Sales Supervisor at a mutual fund distributor or insurance affiliate
- Office of Supervisory Jurisdiction (OSJ) Principal
- Training Supervisor for investment company sales teams
🔹 Prerequisite:
- Must hold Series 6 or Series 7 before taking the Series 26
📊 Comparison Table: Series 24 vs Series 26
| Feature | Series 24 | Series 26 |
|---|---|---|
| Full Title | General Securities Principal | Investment Company/Variable Products Principal |
| Product Scope | All general securities (equity, debt, etc.) | Mutual funds, variable annuities, 529s |
| Supervises | Series 7 reps and their activities | Series 6 reps and their activities |
| Prerequisite Exam | Series 7 | Series 6 or Series 7 |
| Common Employers | Full-service broker-dealers | Mutual fund firms, insurance companies |
| Exam Length | 150 questions – 3.5 hours | 110 questions – 2.5 hours |
| Passing Score | 70% | 70% |
| Best For | Broad managerial roles in securities firms | Supervisory roles in packaged product firms |
🧠 3. How to Choose Between Series 24 and Series 26
✅ Choose Series 24 if:
- You aim to manage broad broker-dealer operations.
- You want to supervise a wide range of securities activities, including equity, debt, and options.
- You’re seeking a compliance-heavy or branch leadership role.
✅ Choose Series 26 if:
- You work primarily with mutual funds, variable contracts, or insurance-based products.
- Your firm only deals in investment companies and doesn’t offer broader securities products.
- You want a focused supervisory role without the broader compliance scope of Series 24.
🚀 Conclusion: Management in Securities Starts Here
Both the Series 24 and Series 26 prepare you for leadership in the financial services industry. The difference comes down to product coverage and depth of supervisory responsibility. For general securities firms, Series 24 is essential. For insurance affiliates or mutual fund-focused firms, Series 26 may be all you need.
🎓 Need help preparing for the Series 24 or Series 26 exams?
Get targeted study guides, timed simulations, and full exam breakdowns at:
👉 https://finra-exam-mastery.com
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