Registered Principal
Contents
Demystifying Registered Principals: A Comprehensive Guide to Securities Management
Unraveling the Role of Registered Principals in Securities Management
In the intricate landscape of securities and investment firms, registered principals play a pivotal role in ensuring operational efficiency and regulatory compliance. Let's delve into the world of registered principals, exploring their responsibilities, qualifications, and the rigorous examination process they undergo.
Understanding the Role of Registered Principals
Registered principals are the linchpins of securities and investment companies, tasked with overseeing operational, compliance, trading, and sales personnel. These management professionals hold principal licenses and bear legal liability for any issues within their firms. From supervising licensing and compliance to ensuring timely regulatory filings, registered principals play a crucial role in maintaining the integrity of their organizations.
The Qualification Process for Registered Principals
Embarking on the journey to become a registered principal requires passing the rigorous Series 24 exam administered by the Financial Industry Regulatory Authority (FINRA). This comprehensive exam evaluates candidates on various job functions, ranging from personnel management to trading and market-making activities. Additionally, candidates must pass the Securities Industry Essentials (SIE) Exam and at least one other qualifying exam to be eligible for the Series 24.
Navigating the Series 24 Exam: A Closer Look
The Series 24 exam comprises 160 questions, covering five primary job functions essential for registered principals. Candidates must demonstrate proficiency in supervising registration, broker-dealer activities, customer-related activities, trading, market-making, and investment banking. With a passing score of 70%, candidates prove their readiness to assume the responsibilities of a registered principal.