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If your company is setting up or operating as a FINRA-registered broker-dealer, the Series 24 license is a key regulatory requirement. It’s the credential FINRA expects from individuals who supervise a firm’s securities business: trading desks, sales teams, investment banking units, and retail communications.
This article outlines what the Series 24 covers, who needs it, and what it takes to get registered. We’ll also explain what the license doesn’t include, where it fits within a broker-dealer’s structure, and how it compares to other principal-level registrations.
InnReg is a global regulatory compliance and operations consulting team serving financial services companies since 2013. If you need assistance with compliance or fintech regulations, click here.
What Is the Series 24 License?
The Series 24 license qualifies an individual to supervise the core business activities of a FINRA-member broker-dealer. That includes trading, investment banking, sales, advertising, and day-to-day operations.
Formally called the General Securities Principal license, Series 24 is required for anyone managing registered representatives or overseeing regulated functions. This applies whether the firm operates a trading platform, handles private placements, or runs a retail brokerage.
Holding a Series 24 means the individual has passed FINRA’s exam covering supervisory rules, operational responsibilities, and regulatory obligations. But it doesn’t authorize someone to sell securities directly. For that, a separate representative-level license like the Series 7 or Series 79 is also required.
In short, the Series 24 is for supervisors, not sales reps. It’s the baseline credential FINRA looks for when someone is running the regulated side of a broker-dealer.
Who Needs the Series 24 License?
Anyone supervising registered representatives or managing a broker-dealer’s securities business needs the Series 24 license. This includes roles like Chief Compliance Officer, Head of Sales, Trading Desk Manager, and even certain executives, depending on their level of involvement.
FINRA rules don’t just consider titles; they also consider functions. If a person is making supervisory decisions, reviewing advertising, or directing trading or investment banking operations, that person must be registered as a principal.
Key roles that typically require Series 24:
Compliance officers overseeing registered staff
Sales or trading supervisors
Operations leaders responsible for customer accounts or trade processing
Executives with decision-making authority over regulated activities
It’s also not uncommon for founders to need the license, especially if they plan to be involved in supervising product or marketing strategies tied to the broker-dealer. In startups, responsibilities often overlap. That can trigger registration requirements unexpectedly.
Firms must also meet structural requirements. FINRA generally expects at least two registered principals on file, and most firms designate at least one Series 24 to cover general supervision. This is true even if the company outsources some compliance functions.
Compliance Duties of a Series 24 Principal
The Series 24 license comes with supervisory responsibility. FINRA expects licensed principals to actively manage the firm’s compliance systems, personnel, and day-to-day conduct. Here are five key compliance duties and responsibilities of a Series 24 principal:
1. Supervisory Systems and Written Procedures
FINRA Rule 3110 requires firms to build and maintain a supervisory system. That includes written supervisory procedures (WSPs) that reflect the firm’s business and regulatory obligations.
A Series 24 principal is usually responsible for:
Developing or approving WSPs
Assigning supervisory responsibilities across the firm
Reviewing how the firm monitors employee conduct and business activity
Making sure the system can scale as the firm grows
This often includes coordination with legal counsel, tech teams, or outsourced vendors, depending on how the firm operates.
2. Approving Communications and Advertising
A registered principal must approve all retail communications before use. That includes websites, investor emails, pitch decks, app content, and marketing campaigns.
A Series 24 principal typically reviews:
Whether statements are fair and balanced
Whether performance claims are appropriately disclosed
How risk factors are presented
Whether a FINRA filing is required for certain materials
In fintech firms, where product and marketing teams often move quickly, this advertising review process needs to be well-structured without slowing down innovation.
3. Handling Customer Accounts and Complaints
Thirdly, principals are expected to supervise how accounts are opened, monitored, and serviced. That includes reviewing:
Account approvals, especially for higher-risk accounts
Suitability and KYC procedures
Trade review and exception reporting
How written complaints are logged and resolved
Complaints that meet certain criteria must also be reported to FINRA on a timely basis.
4. Managing Registrations and Filings
Series 24 principals play a key role in managing both individual registrations and firm-level disclosures. Their responsibilities typically include approving Form U4 and U5 filings, tracking continuing education deadlines, and keeping registration records up to date when roles change or individuals leave the firm.
They also handle updates to Form BD and Form BR when the firm adds new business lines or changes its office structure. Delays or errors in these filings can lead to regulatory scrutiny, operational risk, and fines for untimely filings.
See also:
5. Overseeing Training and Annual Meetings
Last but not least, FINRA requires firms to conduct an Annual Compliance Meeting. The Series 24 principal is generally responsible for:
Planning the meeting agenda
Delivering or approving training content
Documenting attendance and follow-up actions
Coordinating with internal departments or external providers as needed
This role also includes reviewing and implementing firm-wide training on topics like AML, privacy, and conflicts of interest.
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Series 24 Exam Requirements and Prerequisites
The Series 24 License isn’t a beginner’s license. Instead, it builds on prior registration and experience, giving it some of the more complex requirements and prerequisites.
Therefore, you can’t take the Series 24 exam without meeting specific prerequisites. Here are the exam requirements and prerequisites for the Series 24 license:
Sponsorship and Registration
To sit for the Series 24 exam, you must be sponsored by a FINRA-member firm. The firm files a Form U4 on your behalf, which triggers eligibility for the exam.
Independent candidates can’t take the exam on their own. FINRA requires that candidates already be registered representatives and affiliated with a member firm.
Sponsorship also means the firm is vouching that you’ll be functioning in a principal role. FINRA expects this role and its involved principals to be actively engaged in supervision.
Required Exams (SIE + Rep-Level Exams)
The Series 24 is a principal-level exam. You must already hold or concurrently obtain a qualifying representative-level license. That means you need the Securities Industry Essentials (SIE) exam and one of the following rep-level exams:
Series 7 (General Securities Representative)
Series 57 (Securities Trader Rep)
Series 79 (Investment Banking Representative)
Series 82 (Private Securities Offerings Rep)
Series 16/86/87 (Research Analyst)
Which exam you need depends on the business you supervise. For example, Series 7 + 24 qualifies you as a General Securities Principal. Series 79 + 24 qualifies you to supervise investment banking activities.
Exam Format, Cost, and Passing Score
The Series 24 exam format covers five major content areas, including supervision of investment banking, trading, customer accounts, regulatory framework, and communications. The exam is closed-book and proctored.
Many candidates underestimate the difficulty of this exam because it requires both memorization of and judgment in how to apply FINRA rules in supervisory scenarios. So, it's best approached using a structured study plan and real-world context in mind.
Here’s an overview of the Series 24 exam:
Other Principal Licenses vs. Series 24
The Series 24 license covers broad supervisory authority across a FINRA-member firm. But it doesn’t cover everything. Depending on your business model, you may need other principal licenses, either instead of or in addition to Series 24.
Here’s how Series 24 compares to other commonly held principal licenses.
Series 24 vs. Series 26
Series 26 is a limited principal license intended for firms that only deal in mutual funds, variable annuities, and similar packaged products. It’s commonly used in broker-dealers tied to insurance companies.
Here’s the difference between Series 24 vs. Series 26 licenses:
Bottom line: If your firm deals only in packaged products, Series 26 may suffice. If your business includes equities, trading, or investment banking, you’ll need Series 24.
See also:
Series 24 vs. Series 9/10
Series 9/10 is designed for sales supervisors, typically branch managers or team leads. It’s a narrower license focused on supervising reps, not full firm operations. Here are the key differences between a Series 24 license and Series 9/10 licenses:
If you’re building or running a broker-dealer, Series 24 provides broader supervisory coverage. Series 9/10 is more appropriate for reps managing daily sales activity under a higher-level principal.
When You Need Additional Licenses
There are cases where Series 24 alone isn’t enough. Additional principal licenses may be required based on your product lines or business activities:
Series 4 – Required for supervising options trading
Series 27 – Needed to act as a Financial and Operations Principal (FinOp)
Series 53 – Required for municipal securities supervision
Series 99 – For operations professionals handling back-office functions
A typical setup for full-service firms includes a Series 24 principal, a Series 27 FinOp, and a Series 4 for options oversight. For fintechs with niche models, combinations vary based on business scope.
If you're unsure which licenses your firm needs, a gap analysis with your compliance team can clarify which roles require what coverage. Firms often bring in outside experts to guide this process.
At InnReg, our team specializes in helping fintechs map business activities to FINRA licensing requirements, especially when responsibilities span multiple products, roles, or legal entities.
Series 24 in a FINRA Firm Structure
FINRA requires that individuals be licensed, and it also sets expectations for how firms are structured. If you're launching or operating a broker-dealer, the Series 24 license plays a central role in your supervisory framework.
Two-Principal Requirement
Most FINRA-member firms must have at least two registered principals on file. This rule applies at the firm level, not just to specific business units. The purpose is simple: if one principal becomes unavailable, there’s backup supervision in place.
Typically, one of those principals is a General Securities Principal (Series 24). The other might hold a specialized license like Series 27 (FinOp) or Series 4 (Options Principal), depending on the firm's business.
Exceptions to the two-principal rule are limited. They generally apply only to sole proprietors with narrow business models or firms granted specific relief by FINRA during formation.
Temporary Principal Status (120-Day Rule)
In certain cases, FINRA allows a rep to act as a principal for up to 120 days before passing the Series 24 exam. This is known as “interim principal” status.
To qualify:
The individual must already be registered as a representative
The individual must be designated as a principal by the firm
The individual must have at least 18 months of experience as a registered representative within the five-year period immediately preceding the principal designation
This 120-day grace period can be helpful when promoting from within or onboarding a candidate with rep-level licensing who hasn’t yet passed the Series 24.
But it’s not a workaround. If the individual doesn’t pass the exam within the window, they must step down from the principal role until they do.
Should You Outsource or Obtain a Series 24 License?
For many fintechs, the question is more about how to staff that role. Some firms register an internal executive. Others bring in an external principal on a contract or outsourced basis. The right approach depends on your structure, timeline, and budget.
When to Hire vs. Outsource
Hiring in-house works well if you have someone with the right qualifications and long-term plans to lead compliance. But full-time principals can be expensive, especially for startups.
Outsourcing is often a better fit when:
You need to move quickly with experienced supervision
You’re still validating your business model or product
You don’t yet need a full-time Chief Compliance Officer
You want to defer long-term headcount costs
An outsourced Series 24 principal can cover supervisory requirements while you build out the rest of your team.
Hiring is often a better fit when:
You have a qualified internal candidate ready to take on supervisory responsibilities
The firm is large enough to justify a full-time compliance leadership role
You need deep, embedded alignment between compliance and business strategy
You’re planning to scale rapidly and want continuity in oversight
The principal role includes additional responsibilities beyond regulatory supervision (e.g., executive leadership, product input)
See also:
How Contracted Principals Work
A contracted or outsourced principal is typically registered with your firm on a part-time basis. This person:
Holds the Series 24 license and any other relevant credentials
Is added to your firm roster
Provides supervision, compliance reviews, and documentation
Coordinates with your legal, operations, and product teams
They must have real authority and access to firm systems. FINRA expects active involvement, not just a name on paper.
Benefits and Considerations for Startups
Outsourcing the Series 24 role can provide faster setup for new firms or new business lines. You can also have access to a team with deep regulatory experience without the hassle, cost, or overhead of hiring a full-time principal.
At InnReg, we often fill this gap for fintech clients launching broker-dealers, offering practical oversight without overstaffing. Our approach blends operational integration with process-driven compliance management, making us effective partners, especially for firms moving fast or working with novel business models.
Checklist: Are You Covered on Series 24 Requirements?
Use this checklist to identify whether your firm has the right coverage or if there’s a gap that must be addressed.
Do you have someone responsible for supervising:
Trading, sales, or investment banking activity?
Customer accounts and suitability processes?
Advertising and retail communications?
Registration filings and personnel changes?
Annual compliance meetings and training?
Is that person:
Sponsored and registered with your FINRA-member firm?
Actively involved in day-to-day supervision?
Licensed with Series 24 and any other required exams (Series 7, 4, 27, etc.)?
Structurally, does your firm:
Meet FINRA’s two-principal minimum (unless exempt)?
Assign supervisory responsibilities in your WSPs?
Have backup coverage in case a principal becomes unavailable?
If outsourcing, have you:
Verified that the principal is licensed and experienced in your business model?
Provided them access to the systems, documents, and teams they need?
Clearly defined their supervisory authority and responsibilities?
If any of these areas are unclear or incomplete, it’s worth reviewing your supervisory structure before regulatory exams or business expansion.
The Series 24 license is a regulatory baseline for anyone overseeing the core activities of a broker-dealer. If your fintech venture includes a trading feature, an investment banking arm, or even just retail brokerage functionality, someone on your team should hold this license. In most cases, more than one person.
Whether you're structuring a new FINRA member firm or expanding an existing one, understanding the Series 24 requirements early can help you mitigate the risk of delays, registration issues, or worse, regulatory enforcement.
If you're unsure whether your current leadership structure meets FINRA’s requirements or if you need a licensed principal to build or oversee your compliance framework, InnReg can help.
We’ve guided over 100 fintechs through complex licensing, registration, and compliance setups. From outsourced principal support to compliance program buildouts, we specialize in the intersection of innovation and regulation.
Contact us to explore how InnReg can support your Series 24 and broader compliance needs.
How Can InnReg Help?
InnReg is a global regulatory compliance and operations consulting team serving financial services companies since 2013.
We are especially effective at launching and scaling fintechs with innovative compliance strategies and delivering cost-effective managed services, assisted by proprietary regtech solutions.
If you need help with broker-dealer compliance, reach out to our regulatory experts today:
Published on Jul 30, 2025
Last updated on Jul 30, 2025
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