Function 1: Supervision of Registration & Personnel Management (22% Exam Weight)

Series 24 — Function 1: Supervision of Registration & Personnel Management

Master the Series 24 — Function 1: Supervision of Registration & Personnel Management function of the Series 24 (General Securities Principal) exam with official regulatory rules, quantitative formulas, and targeted practice drills.

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Authoritative Series 24 Study Notes

Key Concepts & Regulatory Highlights

Covers principal supervision of firm registration, branch office inspections (FINRA Rule 3110 OSJ vs. supervisory vs. non-supervisory branch schedules), Form U4/U5 filing deadlines, FINRA two-year retained jurisdiction, Continuing Education and the Maintaining Qualifications Program (FINRA Rule 1240), and Statutory Disqualification eligibility proceedings (Form MC-400).

📐 Essential Calculation Formulas

FINRA Rule 3110 Branch Inspection Frequencies

OSJ & Supervisory Branch = Annually | Non-Supervisory Branch = Every 3 Years

Inspections cannot be conducted by the branch manager or any person who reports to the branch manager.

Form U5 Filing & FINRA Retained Jurisdiction

U5 Filed within 30 Calendar Days | 2-Year Post-Termination Jurisdiction

MQP extends exam qualification eligibility up to 5 years with annual CE completion.

📜 Core Regulatory Rules & Requirements

✓FINRA Rule 3110(c) Internal Inspection Cycles: Offices of Supervisory Jurisdiction (OSJs) and supervisory branch offices must be inspected at least ANNUALLY (every calendar year); non-supervisory branch offices must be inspected at least every 3 YEARS; non-branch locations on a regular periodic schedule.

✓Form U4 & U5 Supervision: Form U5 must be filed with CRD and a copy provided to the terminated individual within 30 calendar days of termination. If a subsequent event renders a prior U5 inaccurate, an amended U5 must be filed within 30 days of discovery. FINRA retains disciplinary jurisdiction for 2 years after termination.

✓Continuing Education (FINRA Rule 1240): Regulatory Element CE must be completed ANNUALLY by December 31 (failure triggers CE Inactive status on January 1). Terminated individuals who enroll in the Maintaining Qualifications Program (MQP) can extend their qualification window from 2 years up to 5 years by completing annual CE.

✓Statutory Disqualification (Exchange Act Section 3(a)(39)): Triggered by ANY felony conviction (financial or non-financial) or any securities/fraud/theft misdemeanor conviction within the past 10 years, or a bar/injunction from a financial regulator. Sponsoring a statutorily disqualified person requires filing Form MC-400 and implementing heightened supervision.

💡 High-Yield Exam Watchouts

•Under the Taping Rule (FINRA Rule 3170), if a firm hires an excessive percentage of reps from 'disciplined firms,' it has 30 days to terminate enough reps to drop below the threshold or 60 days to install tape-recording systems for all reps for 3 years.
•An Office of Supervisory Jurisdiction (OSJ) is any location where market making, underwriting/structuring, order execution, retail communication approval, or custody of customer funds occurs.

Why Study Series 24 — Function 1: Supervision of Registration & Personnel Management?

The Series 24 — Function 1: Supervision of Registration & Personnel Management portion of the General Securities Principal (Series 24) exam is critical for passing on your first attempt. Understanding these concepts builds both test-day precision and practical regulatory fluency.

Our practice questions and formulas are engineered to mirror the official Series 24 blueprint and statutory complexity you'll encounter at Prometric.

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