Back in July, FINRA filed a proposed rule change with the SEC to revise the content outline and selection specifications for the Series 24 examination. The material revisions were updated due to changes in the laws, rules and regulations covered by the exam. Additionally, FINRA proposed changes to the format of the content outline. These changes will go into effect October 13th.
Currently, there are five sections of the exam. With the new revisions, FINRA changed the five sections to reflect the five major job functions performed by a General Securities Principal, and also altered the number of questions for each section to place greater emphasis on the key job functions of a General Securities Principal.
The new sections and number of questions are:
- Supervision of Registration of the Broker-Dealer and Personnel Management Activities, 9 questions;
- Supervision of General Broker-Dealer Activities, 45 questions;
- Supervision of Retail and Institutional Customer-Related Activities, 32 questions;
- Supervision of Trading and Market Making Activities, 32 questions; and
- Supervision of Investment Banking and Research, 32 questions.
Also, the content outline now includes specific tasks associated with performing each job function tested on the exam and details regarding the business knowledge required to perform each task.
Furthermore, FINRA made the following changes to the format of the content outline:
- Added a table of contents;
- Provided more details regarding the purpose of the examination;
- Provided more details on the application procedures;
- Provided more details on the development and maintenance of the content outline and examination;
- Explained that the passing score is established by FINRA staff in consultation with a committee of industry representatives and is an absolute standard independent of the performance of the candidates taking the exam; and
- Noted that each candidate will receive a score report at the end of the test session.
The number of questions, time to complete, and passing score for the exam have not changed. The questions remain at 150; individuals have 3 hours and 45 minutes to complete the exam, and must pass with a score of at least 70%.
FSI applauds FINRA’s efforts in updating and improving the content outline for the Series 24 exam.