Series 24 Exam 2025 Questions and
Answers
Form NMA - ANSWER✔✔-Opens 180 day window for new application for b/d
registration
Finra responsibilities - ANSWER✔✔-Obl/authority interpret rules, fees, compliance
issues, disputes, CRD, education
Form BD - ANSWER✔✔-form used by B/D to register with SEC, SRO's. Must be
updated within 30 days when out of date.
Form CMA - ANSWER✔✔-must be filed electronically when there is a change in
ownership or control.
Finra regulates which securities? - ANSWER✔✔-OTC nonexempt securities
Nasdaq rule 1014 - ANSWER✔✔-org chart, business plan, supervisory systems,
financial projections, record keeping
,When are DBA's acceptable? - ANSWER✔✔-acceptable if filed with finra and
commission
Each B/D must have a min of how many principals register (except for Sole
proprietors)? - ANSWER✔✔-2 principals (min)
DMR ( Dept of Member Registration) process/responsibilities? - ANSWER✔✔-review
applicants capital, scope of business harmony with public interest and protection of
investors.
DMR issues a written decision within how many days of the pre-membership
interview? - ANSWER✔✔-30 days (grant the application, deny it, grant with
restrictions)
Finra requires how many resident principals for Office of Supervisory Jurisdiction? -
ANSWER✔✔-1 resident principal
What is statutory disqualification? - ANSWER✔✔-disciplinary actions in the last 10
years by SEC.
What is form MC400? - ANSWER✔✔-Form that needs to be completed if a firm wants
to sponsor a person who was disqualified. Disqualifications also include DUI and
assault, however, they do not pose a risk to investors and may be approved.
What is the fee paid by firms to employee statutory disqualified employees (if approved
by finra)? - ANSWER✔✔-$1500 annually Tier 1
, $1000 annually Tier 2
If Finra bars or suspends a Associated Person, member firms cannot - ANSWER✔✔-
employee these people in any capacity
What is rule 9522? - ANSWER✔✔-Dept of Member Regulation (DMR) has right to
approve statutory disqualified persons to become an associate of a member firm.
What is rule Rule 4530 - ANSWER✔✔-must report within 30 calendar days.
What is Form BDW used for ? - ANSWER✔✔-used to withdraw registration as a B/D
Member firms membership can be suspended/revoked if feed are not paid with in how
many days? - ANSWER✔✔-15 days
When is a principal required? - ANSWER✔✔-1)actively engaged in mngt of investment
banking/securities business
2) When supervising associated persons
How many days does a b/d have to respond to a potential employer regarding an
associated person? - ANSWER✔✔-10 business days
How many years of employment do principals need check before signing U-4? -
ANSWER✔✔-3 years
Finger printing - ANSWER✔✔-3 attempts
Answers
Form NMA - ANSWER✔✔-Opens 180 day window for new application for b/d
registration
Finra responsibilities - ANSWER✔✔-Obl/authority interpret rules, fees, compliance
issues, disputes, CRD, education
Form BD - ANSWER✔✔-form used by B/D to register with SEC, SRO's. Must be
updated within 30 days when out of date.
Form CMA - ANSWER✔✔-must be filed electronically when there is a change in
ownership or control.
Finra regulates which securities? - ANSWER✔✔-OTC nonexempt securities
Nasdaq rule 1014 - ANSWER✔✔-org chart, business plan, supervisory systems,
financial projections, record keeping
,When are DBA's acceptable? - ANSWER✔✔-acceptable if filed with finra and
commission
Each B/D must have a min of how many principals register (except for Sole
proprietors)? - ANSWER✔✔-2 principals (min)
DMR ( Dept of Member Registration) process/responsibilities? - ANSWER✔✔-review
applicants capital, scope of business harmony with public interest and protection of
investors.
DMR issues a written decision within how many days of the pre-membership
interview? - ANSWER✔✔-30 days (grant the application, deny it, grant with
restrictions)
Finra requires how many resident principals for Office of Supervisory Jurisdiction? -
ANSWER✔✔-1 resident principal
What is statutory disqualification? - ANSWER✔✔-disciplinary actions in the last 10
years by SEC.
What is form MC400? - ANSWER✔✔-Form that needs to be completed if a firm wants
to sponsor a person who was disqualified. Disqualifications also include DUI and
assault, however, they do not pose a risk to investors and may be approved.
What is the fee paid by firms to employee statutory disqualified employees (if approved
by finra)? - ANSWER✔✔-$1500 annually Tier 1
, $1000 annually Tier 2
If Finra bars or suspends a Associated Person, member firms cannot - ANSWER✔✔-
employee these people in any capacity
What is rule 9522? - ANSWER✔✔-Dept of Member Regulation (DMR) has right to
approve statutory disqualified persons to become an associate of a member firm.
What is rule Rule 4530 - ANSWER✔✔-must report within 30 calendar days.
What is Form BDW used for ? - ANSWER✔✔-used to withdraw registration as a B/D
Member firms membership can be suspended/revoked if feed are not paid with in how
many days? - ANSWER✔✔-15 days
When is a principal required? - ANSWER✔✔-1)actively engaged in mngt of investment
banking/securities business
2) When supervising associated persons
How many days does a b/d have to respond to a potential employer regarding an
associated person? - ANSWER✔✔-10 business days
How many years of employment do principals need check before signing U-4? -
ANSWER✔✔-3 years
Finger printing - ANSWER✔✔-3 attempts
