Series 27 Exam or General Securities Registered Representative Examination
Financial and Operations Principal Exam- Series 27
The series 27 also referred to as Financial and Operations Principal is a license that entitles the holder to prepare and manage financial records specifically a member firm brokerage. Administered by Financial Industry Regulatory Authority (FINRA) the Series 27 exam assesses an individual’s competency in Financial and Operations knowledge. FINRA is an independent non-governmental organization that formulates and enforces the rules and regulations governing all registered brokers and the broker-dealer firms in the United States.
FNRA provides a 24-page content outline that anyone can download here .Series 27 Exam Topics
Some of the topics that the Series 27 Exam covers include:
- Financial recording
- General Securities Industry regulation
- Operations
- Customer Protection
- Preservation of books and records
- Funding and cash management
- Margin account rules
- Anti-money laundering
In addition to above topics students are expected to familiarize themselves with the various FINRA and SEC, Generally Accepted Accounting Principles (GAAP), Financial Accounting Standards Board (FASB statements and other laws such as the Securities and Exchange Act of 1934.
Eligibility to give Series 27 Exam
A candidate must be an associate of a sponsored FINRA frim or other applicable self-regulatory organization (SRO). The FINRA member firm files a Form U4 on behalf of a candidate through the FINRA's Central Registration Depository (CRD). Series 27 candidates are required to present a brokerage dealer with at least a net capital of $25,000 or a municipal securities broker with a minimum net capital of $150,000.
Series 27 Exam Format fees and test passing score
The exam is administered via computer. Each candidate’s exam includes 10 additional, unidentified pretest items that do not contribute toward the candidate's score. The 10 items are randomly distributed throughout the exam. Therefore, each candidate’s exam consists of a total of 155 items (145 scored and 10 unscored). There is no penalty for guessing. Therefore, candidates should attempt to answer all items. Candidates will be allowed 3 hours and 45 minutes to complete the exam.
The Series 27 Exam is composed of multiple-choice questions. Students are expected to take three hours and forty-five minutes. The lowest passing score is 69%. FINRA's test-taking fee is $120 is considered modest when compared with other financial certifications.
Once certified, the license normally takes two years between different jobs or employment before expiring. When an individual ceases working for a given firm, his or her former employer files Form U5 to terminate the registration. However, as long as an individual does not exceed two years between employers, the Series 7 license remains active. For those who have exceeded the two years, the current employer is required to fil a new form U4 for the employee to be re-registered.
The test administrator will provide white boards/dry erase markers and basic electronic calculators to candidates, who must return these materials to the test center administrator at the end of the testing session. Some exam items may involve calculations. Only calculators provided by the test center administrators are allowed for use during the exam. Candidates are not permitted to bring any reference material to their testing session.
| Major job functions | Nmber of exam questions | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Financial reporting (F1) | 25 | Operations, General Securities Industry Regulations and Preservation of Books and Records (F2) | 42 | Customer Protection (F3) | 24 | Net Capital (F4) | 41 | Funding and Cash Management (F5) | 13 |
Study Guide And Test Preparation For Series 27 Exam
A Complete Series 27 Exam Study Guide that includes sample questions, test tips and a complete study plan prepared by a team of expert and dedicated researchers. Cost-effective and qualified exam help from a committed exam preparation company.
Series 27 Study Guide (printed book)