Principal Exam 268

[Ilona Brownson]

BeginningJune 9, 2023, candidates will need an approved accommodation to schedule an online appointment for an NFA or FINRA exam (other than the SIE). Online appointments scheduled to be taken after Sept. 9, 2023, will be canceled if the candidate does not have an approved accommodation.

The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a principal, including the rules and statutory provisions applicable to the supervisory management of a general securities broker-dealer.

In addition to the Series 24 exam, candidates must pass the Securities Industry Essentials (SIE) Exam and a representative-level qualification exam, or the Supervisory Analysts Exam (Series 16) exam, to hold an appropriate principal registration. Based on their corequisite qualification(s), candidates will receive the following principal registration(s) upon passing the Series 24 exam:

The Series 24 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the five major job functions of a general securities principal. The table below lists the allocation of exam items for each major job function.

Candidates must be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm to be eligible to take FINRA principal-level qualification exams. For more information on registration requirements, refer to FINRA Rule 1210.

The General Securities Sales Supervisor Exams (Series 9 and 10) are limited principal exams. They qualify an individual to supervise sales activities of a broker-dealer. They satisfy the testing requirements of the NYSE, Cboe, the MSRB, FINRA and Nasdaq. The Series 9 and 10 qualify the branch manager to supervise sales activities in corporate securities (equity and debt), investment company products and variable contracts, municipal securities, options, government securities and direct participation programs (DPPs). The General Securities Sales Supervisor Exams do not allow the sales supervisor/branch manager to supervise other areas of a member's securities business, such as underwriting, trading, advertising or overall firm compliance with financial responsibilities.

The Series 24, on the other hand, qualifies a candidate as a general securities principal for FINRA only. By passing the Series 24, the candidate can supervise all areas of the member's investment banking and securities business, such as underwriting, trading and market making, advertising, or overall compliance with financial responsibilities. While the scope of the general securities principal's supervisory authority is broader than the Series 9 and 10, the Series 24 is limited in the products that it covers. The general securities principal qualification does not cover municipal securities or options.

Due to damage from a flood, Prometric has closed their NYC test center located at 1250 Broadway, Suite 2500, New York, NY 10001, until further notice. Prometric has blocked all appointment dates at this center through September 2024. They have also operationalized a temporary test center to alleviate capacity challenges in New York City, which will open on August 6, 2024. Scheduling for this site is now open. See below for more details:

FINRA is working closely with Prometric to commission additional temporary test centers in this area. Any candidate experiencing difficulties when rescheduling their appointment should contact Prometric at 1-800-578-6273.

In addition, to help alleviate the inconvenience caused due to the closure, FINRA will temporarily approve online testing for NYC candidates for their FINRA-sponsored exams in addition to the Securities Industry Essentials (SIE) exam. This does not include NASAA (S63, S65, S66), NFA (S3, S30, S31, S32, S34) or MSRB (S50, S51, S52, S53, S54) exams. Candidates who wish to test online will need to complete an Online Exam Distance Request Form to request online testing. Once approved, candidates may schedule appointments via www.prometric.com/finra by selecting Option 2: Schedule Your Exam for Online Delivery. Please note, since this is a temporary online exam administration offering by FINRA, the exam requested will not be specifically listed in the Prometric scheduling system introductory language; however, candidates will be able to schedule FINRA exams by entering their eligibility information.

To become registered, securities professionals must pass qualifying exams administered by FINRA to demonstrate their competence in the particular securities activities in which they will work. An individual must pass the exams prior to engaging in those areas of the business.

These exams cover a broad range of subjects on the markets and the securities industry and its regulatory structure. This includes knowledge of FINRA rules and also the rules of other self-regulatory organizations (SROs). The purpose of the exams is to ensure that an individual acquires a minimum level of understanding and expertise.

Due to the coronavirus pandemic (COVID-19), FINRA is providing temporary relief for member firms from rules and requirements in the Frequently Asked Questions below. The relief provided does not extend beyond the identified rules and requirements. FINRA will continue to monitor the situation to determine whether additional guidance and relief may be appropriate. As coronavirus-related risks decrease, member firms should expect to return to meeting any regulatory obligations for which relief has been provided.

The limited supervisory functions that can be properly delegated to registered representatives also may be assigned to persons registered as Foreign Associates under NASD Rule 1100. Foreign Associates, however, may not perform the functions that require a principal registration.

A person who processes agency transactions by communicating all orders to another firm, which then calls or electronically communicates with the contra-side of the transaction, is not involved in the execution of transactions for purposes of Rule 1032(f) and thus is not required to be Series 55 registered.

A broker/dealer is not required to register as branch offices under Rule 3010(g) non-public office locations where existing customers can use computer terminals to access their accounts and enter orders.

Minimum requirements under NASD Rule 3010 if a member centralizes its supervisory oversight function over the firm's employees who are both acting as registered representatives and as investment advisers.

The FINRA qualification and registration requirements are set forth in FINRA Rules 1210 through 1240.1 These rules, among other things: (1) require the registration of individuals as representatives or principals; (2) allow for the permissive registration of associated persons of firms; (3) establish a waiver program for individuals working for a financial services industry affiliate of a member firm; (4) require firms to designate a Principal Financial Officer and a Principal Operations Officer; and (5) set forth requirements for registered persons who are to function as princip

Please Note: This information serves for the TExES Exam and Certification Requirements. Students are responsible for all information listed in this email, please be sure to read it carefully and retain a copy for your records.

Congratulations for reaching this point in your program. If you are in Texas, there are two TExES exams required for certification for Principal as Instructional Leader (PIL): TExES 268 and TExES PASL 368. Learn more about the PIL.

Note. Out-of-State Students are not eligible for testing or certification in Texas, please be sure to check your state requirements for Principal Certification in your state. This document does not relate to you. However, please sign it to acknowledge that you understand that you cannot take the TExES for certification in your state.

Please complete all applications with Lamar University (LU) to be approved with TEA to take these exams and to be approved for certification. When you are ready to test, use the checklists below to ensure that all your applications are completed correctly and in the correct order.

You will be notified by Pearson for Principal 268 and ETS for PASL 368 of your testing results. If you pass both exams, please continue by using the Checklist to Be Certified below. If you need to retest, please see the information below the checklist.

After passing your TExES exams, you will need to complete another application with Lamar University to be recommended for the Certification as Principal 268. Do not apply for certification with TEA until after you have completed the LU application to request approval for Certification. Use the below Checklist.

TEA will email you at the email address you provided with TEA that you have been recommended by LU. Check your email within 6 weeks after you have submitted your certification application to Lamar and TEA for your recommendation for certification. Please contact LU certification office if you have questions or concerns.

Lamar University and Texas Education Agency (TEA) are subject to make changes at any time pertaining to testing and certification deadlines, TExES exams and Lamar and TEA policies. Please make sure and check Lamar University websites and TEA websites for any changes and updates. All updated information can be found on the LU Certification Office website.

To retake one or both of the exams, please complete the application in Step 1 to retake exam. Texas Education Code 21.048 limits candidates to four attempts to retake any educator certification examination. This means that candidates are limited to a total of five attempts to pass a certification examination. For more information, please see the Educator Certification Examination Retake Limit FAQs.

3a8082e126