Series 27
Contents
Unveiling the Series 27 License: A Comprehensive Guide
The Series 27 license, often a crucial credential in the financial industry, carries weight for professionals tasked with managing the books and recordkeeping of member firms. But what exactly is the Series 27, and how does one obtain it? Let's navigate through the intricacies of this securities license and shed light on its significance.
Deciphering the Series 27
The Series 27 license, administered by FINRA, grants individuals the authority to oversee financial and operational aspects within member firms. This designation is vital for roles such as chief financial officers (CFOs) and chief operating officers (COOs), as it enables them to undertake crucial responsibilities like bookkeeping, recordkeeping, and compliance with financial regulations.
Key Features
- License Requirement: Professionals seeking roles in financial and operational management within member firms typically pursue the Series 27 license.
- Exam Mandate: To obtain the Series 27, candidates must pass the Financial and Operations Principal Qualification Examination (FN exam), assessing their competency in performing related duties.
- Scope of Responsibilities: Series 27 holders are entrusted with critical tasks, including bookkeeping, recordkeeping, and adherence to financial responsibility rules.
Navigating the Exam
The journey to acquiring a Series 27 license begins with the FN exam, a comprehensive assessment of candidates' knowledge and aptitude in financial and operational principles. Covering topics such as broker-dealer responsibilities, recordkeeping requirements, and regulatory frameworks, the exam rigorously evaluates candidates' preparedness for their prospective roles.
Exam Details
- Format: The Series 27 exam is computer-based, comprising 145 multiple-choice questions and 10 unscored pretest questions.
- Duration: Test-takers have three hours and 45 minutes to complete the exam, which encompasses various functions related to financial reporting, operations, customer protection, net capital, funding, and cash management.
- Passing Criteria: A minimum score of 69% is required to pass the exam, with no prerequisites for eligibility other than affiliation with a FINRA member firm.
- Cost: The examination fee stands at $245, making it an investment in career advancement within the financial industry.
Series 27 vs. Series 28
Distinguishing between the Series 27 and Series 28 licenses is crucial for individuals navigating the complexities of securities regulations. While both designations pertain to financial and operational oversight within member firms, they cater to distinct thresholds and requirements.
Differentiating Factors
- Thresholds: The Series 27 applies to broker-dealers with a minimum net capital requirement of $250,000 and municipal securities brokers with a minimum net capital requirement of $150,000, as per SEC Rule 15c3-1.
- Series 28: Alternatively, the Series 28 serves as an abbreviated version of the Series 27, catering to broker-dealers below the specified thresholds.