Series 27
What Is the Series 27?
The term Series 27 alludes to a securities license that qualifies the holder for prepare and deal with the books and recordkeeping of a member firm. To get the Series 27 license, a professional must breeze through the Series 27 exam, otherwise called the Financial and Operations Principal Qualification (FN) exam. The exam is administered by the Financial Industry Regulatory Authority (FINRA) and evaluates the ability of section level FN contender to perform their job.
Grasping the Series 27
Financial professionals must be licensed to sell investments and other securities. FINRA directs a number of various licenses. People are required to hold certain licenses in light of the idea of their position, the sort of compensation they receive, and the type of services they accommodate the firm. So somebody who sells securities needs a certain license while a compliance officer needs an alternate license.
Any individual who holds the Series 27 license might act as a financial and operations principal, and can perform the accompanying:
- bookkeeping and recordkeeping
- back office obligations
- follow all financial responsibility rules
Holding the Series 27 basically permits people to act as a member firm chief financial officer (CFO) or chief operating officer (COO).
To get a Series 27 license, professionals must breeze through the comparing exam. This exam — called the Financial and Operations Principal Qualification Examination or the FN exam — surveys the information on section level principals who need to become financial and operations principals. It covers subjects, for example, statutory rules encompassing broker-dealer obligations including recordkeeping requirements, as well as things covered under the Securities Investor Protection Act of 1970.
Special Considerations
The Series 27 exam is given on a computer. Up-and-comers can take an instructional exercise on the most proficient method to take the exam before actually doing as such. There's likewise a Series 27 study frame which highlights sample questions. Reference materials are not permitted on exam day, but rather test-takers are given scratch paper and essential electronic number crunchers as a portion of the exam's inquiries include computations.
The exam comprises of 145 various decision questions, as well as 10 unscored pretest questions haphazardly distributed all through the test. Test-takers ought to respond to each question. as there is no penalty for speculating. Competitors have three hours and 45 minutes to complete the test. A passing score is 69% and there are no requirements for taking the Series 27 exam. Competitors must be associated with a FINRA member firm to take the exam. The cost for the Series 27 Exam is $245.
There are no requirements for taking the Series 27 exam, despite the fact that test-takers ought to be associated with a FINRA member firm.
This is the way the exam is broken up:
- Capability 1: Financial Reporting with 25 inquiries
- Capability 2: Operations, General Securities Industry Regulations, and Preservation of Books and Records with 42 inquiries
- Capability 3: Customer Protection with 24 inquiries
- Capability 4: Net Capital with 41 inquiries
- Capability 5: Funding and Cash Management with 13 inquiries
Series 27 versus Series 28
The Series 27 and Series 28 — otherwise called the Introducing Broker/Dealer Financial and Operations Principal Examination — are both required by FINRA for people who prepare and keep up with the books of and records of member firms as required under securities industry rules and regulations.
The Series 27 covers brokers-dealers that have a base net capital requirement of $250,000 and municipal securities brokers with a base net capital requirement of $150,000 under SEC Rule 15c3-1. The Series 28 license, then again, is an abbreviated rendition of the series 27. Broker-dealers that don't meet the Series 27 thresholds listed above might utilize the Series 28.
Features
- Chief financial officers and chief operating officers generally hold Series 27 licenses.
- The Series 27 is a securities license that qualifies the holder for prepare and deal with the books and recordkeeping of a member firm.
- To get a Series 27 license, a professional must pass the Series 27 or the Financial and Operations Principal Qualification exam.
