Study Guides for Series 26 Exam

FINRA's free content outline, and 44 practice questions of our own that name the rule behind each answer.

See all 44 with answers
How often must each registered representative and registered principal take part in an interview or meeting on compliance matters?

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Exam mode: 44 questions, 66 minutes, 31 right to pass (70%).

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Unofficial practice questions, not affiliated with FINRA. Bank checked October 13, 2026.

The real exam, as FINRA describes it

Questions
110
To pass
77 of 110 right (70%)
Time limit
165 minutes
Fee
$200
On the day
120 multiple-choice items: the 110 that are scored and 10 unidentified pretest items.
Corequisites
The SIE with the Series 6, or the SIE with the Series 7.
Sponsorship
A candidate must be associated with and sponsored by a member firm.
Guessing
No penalty.
By function
Personnel and registration 16; associated persons and sales practices 49; compliance and business processes 45.

Checked October 13, 2026 against FINRA's Series 26 page and Series 26 Content Outline. Rules change, so confirm with the agency itself before your test.

FINRA's Series 26 content outline (PDF)

Next step Series 6 questionsSeries 27 practice test

All 44 questions with answers

Personnel and registration 6

  • A member's business is limited to mutual funds and variable contracts. How many registered principals must it have, and in which category? Answer: At least two, in a category that matches its business. Source: FINRA Rule 1210, Supplementary Material .01. Outline: FINRA Series 26 Content Outline (2024), Function 1, task 1.1.
  • A principal registered only in the investment company and variable contracts category supervises fund sales. When may that supervision include closed-end fund shares? Answer: Only during the original distribution. Source: FINRA Rule 1220(a)(11)(A) and (b)(7). Outline: FINRA Series 26 Content Outline (2024), Function 1, task 1.1.
  • A registered person misses the Regulatory Element deadline and the registration becomes inactive. Which statement is true while it is inactive? Answer: The person must stop all activities as a registered person. Source: FINRA Rule 1240(a)(2). Outline: FINRA Series 26 Content Outline (2024), Function 1, task 1.2.
  • How often must each registered representative and registered principal take part in an interview or meeting on compliance matters? Answer: No less than annually. Source: FINRA Rule 3110(a)(7) and Supplementary Material .04. Outline: FINRA Series 26 Content Outline (2024), Function 1, task 1.2.
  • What does the Firm Element of continuing education require a member to do at least once a year? Answer: Assess its training needs and write a training plan. Source: FINRA Rule 1240(b)(2). Outline: FINRA Series 26 Content Outline (2024), Function 1, task 1.2.
  • What must a person hold before registering as an Investment Company and Variable Contracts Products Principal? Answer: Registration as a general securities or fund and variable contracts representative. Source: FINRA Rule 1220(a)(11)(B). Outline: FINRA Series 26 Content Outline (2024), Function 1, task 1.1.
Show all 44 questions (38 more)

Supervising sales practices 20

  • A brochure compares a tax-deferred variable annuity with a taxable account by using an assumed rate of return. What is the highest gross rate the illustration may assume? Answer: 10 percent a year. Source: FINRA Rule 2210(d)(4)(C). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • A customer is asked to exchange one deferred variable annuity for another. Which look-back question must the firm consider under FINRA Rule 2330? Answer: Another annuity exchange in the preceding 36 months. Source: FINRA Rule 2330(b)(1)(B). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • A customer places an order to buy mutual fund shares at 2:00 p.m. on a business day. At what price is the order filled under Investment Company Act Rule 22c-1? Answer: The net asset value next computed after the order arrives. Source: Investment Company Act Rule 22c-1(a), 17 CFR 270.22c-1. Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • A firm wants to run a generic advertisement about mutual fund investing under Rule 135a. What may the advertisement NOT do? Answer: Name a particular fund's securities. Source: Securities Act Rule 135a, 17 CFR 230.135a. Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • A fund has no front-end or deferred sales charge. Its sales-related fees and service fees total 0.40 percent of average net assets a year. May a member describe it as no load? Answer: No. Such fees may not exceed 0.25 percent a year. Source: FINRA Rule 2341(d)(4). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • A fund sponsor offers to pay for a member's representatives to attend a training meeting. Which condition does FINRA Rule 2341(l)(5)(C) set? Answer: The member approves it first, and no sales target is attached. Source: FINRA Rule 2341(l)(5)(C). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.4.
  • A fund's retail communication shows a performance ranking that the fund's own underwriter created. What filing rule applies? Answer: File it at least 10 business days before first use. Source: FINRA Rule 2210(c)(2)(A). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • A member runs its own sales contest for mutual funds. How must the contest be built to be permitted non-cash compensation? Answer: On total production, with every fund equally weighted. Source: FINRA Rule 2341(l)(5)(D). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.4.
  • A mutual fund has no asset-based sales charge and no service fee. What is the highest front-end sales charge FINRA Rule 2341 allows a member to sell it with? Answer: 8.5 percent of the offering price. Source: FINRA Rule 2341(d)(1). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • A principal hands the daily review of outgoing correspondence to an unregistered assistant. What does FINRA Rule 3110.08 say about that? Answer: It is allowed, but the principal stays responsible. Source: FINRA Rule 3110, Supplementary Material .08. Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • A representative urges a customer to buy fund shares today because a dividend will be paid next week. Without a specific, clearly described tax or other advantage, what is this practice? Answer: Selling dividends, which is prohibited. Source: FINRA Rule 2341(e). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.1.
  • A retail communication shows a stock fund's performance. Besides standardized performance, what does FINRA Rule 2210(d)(5) require it to disclose? Answer: The maximum sales charge and the gross expense ratio. Source: FINRA Rule 2210(d)(5). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • A Rule 482 advertisement quotes a stock fund's average annual total return. How current must the quoted figures be? Answer: To the most recent calendar quarter before submission. Source: Securities Act Rule 482(d)(3), 17 CFR 230.482. Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • An associated person tells the firm she will be paid a finder's fee for placing an unregistered offering away from the firm. If the member approves her participation, what must it do? Answer: Record the transaction and supervise it as its own. Source: FINRA Rule 3280(c). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.5.
  • An established member prepares a retail advertisement that promotes a specific mutual fund. It contains no ranking. When must it be filed with FINRA? Answer: Within 10 business days of first use. Source: FINRA Rule 2210(c)(3)(A). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.
  • An office of supervisory jurisdiction receives a complete and correct application package for a deferred variable annuity. By when must a registered principal review it? Answer: Before it goes to the insurer, within seven business days. Source: FINRA Rule 2330(c). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • To which activity does FINRA Rule 2330 on deferred variable annuities NOT apply? Answer: Later reallocations among subaccounts. Source: FINRA Rule 2330(a)(1). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • What is the most a fund may pay each year as an asset-based sales charge under FINRA Rule 2341? Answer: 0.75 of 1 percent of average annual net assets. Source: FINRA Rule 2341(d)(2)(E) and (d)(5). Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • Which firm practice must be identified and eliminated under the conflict of interest obligation of Regulation Best Interest? Answer: A contest tied to sales of specific securities in a limited time. Source: SEA Rule 15l-1(a)(2)(iii)(D), 17 CFR 240.15l-1. Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.3.
  • Which statement must appear in the legend of a Rule 482 advertisement that quotes a fund's performance? Answer: Past performance does not guarantee future results. Source: Securities Act Rule 482(b)(3), 17 CFR 230.482. Outline: FINRA Series 26 Content Outline (2024), Function 2, task 2.2.

Compliance and business processes 18

  • A broker-dealer suspects that a transaction through it involves funds from illegal activity. At what amount must it file a suspicious activity report? Answer: At least $5,000 in funds or other assets. Source: 31 CFR 1023.320(a)(2). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.
  • A carrying member has validated an instruction to transfer a customer's account to another firm. How long does it have to complete the transfer? Answer: Three business days after validation. Source: FINRA Rule 11870(e). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.1.
  • A customer deposits cash at a broker-dealer. Above what amount must the firm file a currency transaction report? Answer: More than $10,000. Source: 31 CFR 1010.311. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.
  • A customer's account is closed. How long must the member keep the customer account information last on file under FINRA Rule 4512? Answer: At least six years after the account is closed. Source: FINRA Rule 4512, Supplementary Material .01. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.1.
  • A customer's arbitration claim against a registered representative is settled. Above what amount must the member report the settlement to FINRA under Rule 4530? Answer: More than $15,000. Source: FINRA Rule 4530(a)(1)(G). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.5.
  • A firm deals in mutual fund shares directly with the issuer, other than on a subscription way basis. What minimum net capital does SEA Rule 15c3-1 set for it? Answer: $25,000. Source: SEA Rule 15c3-1(a)(2)(v), 17 CFR 240.15c3-1. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.4.
  • A firm detects facts that may call for a suspicious activity report and has identified a suspect. How long does it have to file? Answer: 30 calendar days after initial detection. Source: 31 CFR 1023.320(b)(3). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.
  • A firm with no board of directors must have its identity theft prevention program approved under Regulation S-ID. Who gives the approval? Answer: A designated employee at senior management level. Source: Regulation S-ID, 17 CFR 248.201. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.
  • A firm's only business, as dealer and as broker, is the purchase, sale and redemption of mutual fund shares. It promptly transmits all funds and securities and holds none for customers. What is its status under SEA Rule 15c3-3? Answer: It is exempt under paragraph (k)(1). Source: SEA Rule 15c3-3(k)(1), 17 CFR 240.15c3-3. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.4.
  • A member receives a customer's check and order for mutual fund shares. By when must the member send the payment on to the fund's underwriter or transfer agent? Answer: One business day after the later of the order or the payment. Source: FINRA Rule 2341(m). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.1.
  • A principal inspects a branch office and writes the inspection report. For how long must the member keep that report on file? Answer: A minimum of three years. Source: FINRA Rule 3110(c)(2). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.4.
  • A retail fund distributor holds customer accounts. How often must its anti-money laundering program be independently tested? Answer: Annually, on a calendar-year basis. Source: FINRA Rule 3310(c). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.
  • After an account is opened, how often must a firm furnish the customer a copy of the account record under SEA Rule 17a-3(a)(17)? Answer: At intervals no greater than thirty-six months. Source: SEA Rule 17a-3(a)(17), 17 CFR 240.17a-3. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.1.
  • Before signing the annual certification under FINRA Rule 3130, what must the chief executive officer have done in the preceding 12 months? Answer: Met at least once with the chief compliance officer. Source: FINRA Rule 3130(b) and (c). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.3.
  • How must a member tell customers how its business continuity plan addresses a significant business disruption? Answer: In writing at account opening, on its website, and by mail on request. Source: FINRA Rule 4370(e). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.3.
  • What must the principals designated under FINRA Rule 3120 submit to the member's senior management, and how often? Answer: A report on supervisory controls and test results, at least annually. Source: FINRA Rule 3120(a). Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.3.
  • Who may NOT conduct the independent test of a firm's anti-money laundering program? Answer: The firm's designated AML compliance person. Source: FINRA Rule 3310, Supplementary Material .01. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.
  • Who must approve a member's written anti-money laundering program? Answer: A member of senior management, in writing. Source: FINRA Rule 3310. Outline: FINRA Series 26 Content Outline (2024), Function 3, task 3.2.

How this list was compiled: Our own questions, written to FINRA's Investment Company and Variable Contracts Products Principal Qualification Examination (Series 26) Content Outline, marked 2024 (https://www.finra.org/sites/default/files/Series_26_Outline.pdf, read 2026-10-13): Function 1 personnel management activities and registration of the broker-dealer 16 of 110 questions, Function 2 supervises associated persons and oversees sales practices 49, Function 3 oversees compliance and business processes of the broker-dealer and its offices 45. The bank holds 6, 20 and 18. Every fact was read on 2026-10-13 in the public text the question names: FINRA rules on finra.org, and on ecfr.gov Securities Act Rules 135a and 482, Investment Company Act Rule 22c-1, SEA Rules 15c3-1, 15c3-3, 15l-1 and 17a-3, Regulation S-ID and the Treasury's suspicious activity and currency reporting rules. Licence: Questions, choices and explanations are original work of this site.

How it works

Two study guides for the Series 26 exam are free: FINRA's content outline, linked on this page, and this Series 26 practice test of 44 questions of our own, each naming its rule. Unofficial: not affiliated with, endorsed by or sponsored by FINRA.

Read the full guide

Three functions, in FINRA's shares

FINRA's outline gives 110 scored questions: 16 on personnel management and registration, 49 on supervising associated persons and sales practices, and 45 on compliance and business processes. This bank holds 6, 20 and 18, the same shares.

What each guide gives

FINRA's outline lists every task, knowledge item and rule, without explanations. The questions here drill those rules for a principal who supervises fund and variable contract sales: FINRA Rules 2341, 2330, 2210 and 3110, Securities Act Rule 482 and the anti-money laundering rules.

A timed run

Exam mode asks all 44 in 66 minutes, the real pace of 110 in 2 hours and 45 minutes, with 70 percent to pass.

  • FINRA Rule 2210 has two filing clocks: most fund advertisements within 10 business days of first use, self-made rankings 10 business days before.
  • For variable annuities, remember seven business days for principal review and 36 months for the exchange look-back.

Questions and answers

What is the Series 26 exam?

FINRA's Investment Company and Variable Contracts Products Principal exam. It qualifies a principal to supervise sales of redeemable investment company securities, such as mutual funds, and of variable contracts, as FINRA Rule 1220 defines the category.

Is there a free Series 26 study guide?

FINRA's Series 26 content outline is a free PDF that lists every task, knowledge item and rule on the exam. FINRA says it produces only the outline and endorses no course of study. This page adds practice questions and is not FINRA's.

How many questions are on the Series 26 exam?

120 multiple-choice questions in 2 hours and 45 minutes. 110 are scored and 10 are unidentified pretest questions that do not count.

What is the passing score for the Series 26?

70 percent, by FINRA's content outline, which calls the passing score an absolute standard that does not depend on how other candidates perform.

What do you need before taking the Series 26?

FINRA lists two corequisite routes: the SIE with the Series 6, or the SIE with the Series 7. A candidate must also be associated with and sponsored by a member firm. The exam fee is $200.

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