Series 27 Exam

According to the Financial Industry Regulatory Authority (FINRA), registered principals are defined as, "Persons associated with a member who are actively engaged in the management of the member's investment banking or securities business, including supervision, solicitation, conduct of business, or the training of persons associated with a member for any of these functions are designated as principals."  If you manage the recordkeeping aspects of your firm, you'll need to take the Series 27 exam.

Introduction to the Series 27 Exam

The Series 27 exam – also called the Financial and Operations Principal exam – will test your knowledge of the various rules, regulations, and provisions that apply to financial responsibility and recordkeeping.  The exam also includes questions on the various ways that investors are protected as outlined in the Securities Investor Protection Act of 1970, touching on everything from municipal securities regulations to the privacy of consumer financial information.  

Registering for the Series 27 Exam

There is no prerequisite to taking this exam, but you will need to be sponsored by a FINRA approved firm or principal.  In addition, you'll need to pay a fee of $85 to take the exam.  If you fail the test, you'll be able to re-take it after 30 days – although if you aren't able to successfully pass the test after three tries, you'll need to wait another six months.  Therefore, it's in your best interest to be as prepared as possible on your first attempt.  For assistance in setting up a study plan, check the study guide published on the FINRA website or speak with qualified principals in your firm.

Just like the other FINRA financial series exams, you'll be given scratch paper and a basic calculator to use when you arrive at the testing center.  No outside resource materials may be used and your paper and calculator will be collected at the end of the exam.  This is done to prevent cheating on the exam – both from current test attendees and future test-takers. 

Series 27 Exam Questions

The Financial and Operations Principal exam contains 145 multiple choice questions that test your knowledge in seven different categories.  These categories are: net capital requirements (44 questions), recordkeeping and broker-dealer financial reporting (15 questions), customer protection (36 questions), municipal securities rulemaking board regulations (9 questions), uniform practice regulations (12 questions), federal reserve board regulations (8 questions), and other regulations (21 questions).  You’ll have three hours and thirty minutes to complete as many questions as you can on the exam.

To pass the Series 27 test, you must correctly answer 70%, or 102 out of the 145 questions, correctly.  You'll receive your final score, as well as a printout detailing your performance on each specific section, at the end of the exam period.  As with all FINRA tests, the Series 27 exam will only test your knowledge on current rules and regulations.  Any questions that address outdated interpretations or rules which have been overwritten will be removed automatically before the exam begins.