A broker-dealer neither clears transactions nor carries customer accounts. How soon after each calendar quarter must it file Part IIA of Form X-17A-5, the FOCUS report?SEA Rule 17a-5(a), 17 CFR 240.17a-5. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.2.
A broker-dealer tells its independent public accountant that the accountant will not be used for future engagements. How long does the firm have to file a notice of the change?SEA Rule 17a-5(f)(3), 17 CFR 240.17a-5. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
A firm claimed an exemption from the customer protection rule under paragraph (k) for its whole fiscal year. Which report goes into its annual reports beside the financial report?SEA Rule 17a-5(d)(1), 17 CFR 240.17a-5. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.3.
A firm finds that the books and records SEA Rule 17a-3 requires are not current. After its same-day notice, what else must it send?SEA Rule 17a-11(c), 17 CFR 240.17a-11. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
Show all 58 questions (54 more)
Financial reporting, continued
A firm on the aggregate indebtedness standard computes aggregate indebtedness above 1,200 percent of net capital. What does SEA Rule 17a-11 require?SEA Rule 17a-11(b), 17 CFR 240.17a-11. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
A firm's net capital falls below the minimum SEA Rule 15c3-1 requires. When must it give notice of the deficiency?SEA Rule 17a-11(a), 17 CFR 240.17a-11. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
By what date each year must a broker-dealer that files annual reports file its statement about the independent public accountant it has engaged?SEA Rule 17a-5(f)(2), 17 CFR 240.17a-5. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
Under FINRA Rule 4110(c)(2), a carrying or clearing member needs FINRA's prior written approval when capital withdrawals and unsecured loans to owners in a 35 rolling calendar day period exceed, on a net basis, what share of excess net capital?FINRA Rule 4110(c)(2). Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
Which accountants may audit the annual reports a broker-dealer files under SEA Rule 17a-5?SEA Rule 17a-5(f)(1), 17 CFR 240.17a-5. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.3.
Withdrawals of equity capital over 30 calendar days will exceed 30 percent of a firm's excess net capital. When must written notice be given under SEA Rule 15c3-1(e)(1)?SEA Rule 15c3-1(e)(1), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 1, task 1.4.
Operations, regulations and records 17
A buyer has not received securities from the selling firm. Under FINRA Rule 11810, how soon may the buyer close the contract by a buy-in?FINRA Rule 11810(a). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.1.
A customer's whole account is moving through ACATS. After the transfer instruction is established, how long does the carrying member have to validate it or take exception?FINRA Rule 11870(b)(1) and (e). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.1.
A FINRA rule requires a record but names no retention period, and no Exchange Act rule names one either. How long is the record kept?FINRA Rule 4511(b). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
A member reported $200 million or more in gross revenue last calendar year. What must its annual supervisory controls report under FINRA Rule 3120 also contain?FINRA Rule 3120(b). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.3.
A quarterly security count leaves differences that are still unresolved. By when must they be recorded in a security count difference account?SEA Rule 17a-13(b)(5), 17 CFR 240.17a-13. Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
A self-clearing member is naming its Principal Financial Officer and its Principal Operations Officer. What does FINRA Rule 1220(a)(4)(B) require?FINRA Rule 1220(a)(4)(B). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.3.
By what time must a written buy-in notice reach the seller's office under FINRA Rule 11810?FINRA Rule 11810(b). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.1.
FINRA Rule 4522 adds to the quarterly count. How often must a carrying or clearing member reconcile securities and money balances held at clearing corporations and custodians?FINRA Rule 4522(b)(1). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
How long must blotters and general ledgers be preserved under SEA Rule 17a-4(a)?SEA Rule 17a-4(a), 17 CFR 240.17a-4. Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
How often must a broker-dealer subject to SEA Rule 17a-13 physically examine and count the securities it holds?SEA Rule 17a-13(b), 17 CFR 240.17a-13. Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
Under FINRA Rule 4523, how often must a supervisor review each general ledger bookkeeping account, at the least?FINRA Rule 4523(a). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
When must a broker-dealer give or send a customer the written confirmation that SEA Rule 10b-10 requires?SEA Rule 10b-10(a), 17 CFR 240.10b-10. Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.1.
Where does FINRA Rule 4523 put a money or securities item whose final disposition is still being determined, such as an unidentified fail?FINRA Rule 4523(c). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
Which member must designate a full Financial and Operations Principal and may not rely on an Introducing Broker-Dealer Financial and Operations Principal?FINRA Rule 1220(a)(4)(A). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.3.
Which record does SEA Rule 17a-3(a)(1) require a broker-dealer to make?SEA Rule 17a-3(a)(1), 17 CFR 240.17a-3. Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
Which records must a broker-dealer preserve for the life of the enterprise and of any successor enterprise?SEA Rule 17a-4(d), 17 CFR 240.17a-4. Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
Who must approve a member's business continuity plan and conduct its annual review under FINRA Rule 4370?FINRA Rule 4370(d). Outline: FINRA Series 27 Content Outline (2024), Function 2, task 2.2.
Customer protection 10
A firm keeps a customer reserve bank account. What must it obtain from the bank and preserve under SEA Rule 15c3-3(f)?SEA Rule 15c3-3(f), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.4.
A firm makes the weekly customer reserve computation as of the close of the last business day of the week. When is the required deposit due?SEA Rule 15c3-3(e)(3), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.2.
A firm sells an offering on an all-or-none basis. Where must investors' payments go until the contingency is met, under SEA Rule 15c2-4?SEA Rule 15c2-4, 17 CFR 240.15c2-4. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.5.
A possession or control deficit traces to securities failed to receive for more than 30 calendar days. What must the firm do, and by when?SEA Rule 15c3-3(d)(2), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.1.
A small firm qualifies to make the customer reserve computation monthly instead of weekly. How much of the computed amount must it then deposit?SEA Rule 15c3-3(e)(3), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.2.
An introducing firm claims the exemption in SEA Rule 15c3-3(k)(2)(ii). Which statement describes how it must operate?SEA Rule 15c3-3(k)(2)(ii), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.5.
How often, at the least, must a firm that holds customer free credit balances send those customers a written statement of the amount due and that it is payable on demand?SEA Rule 15c3-3(j)(1), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.2.
In the Exhibit A reserve formula, what is the amount a firm must hold in its customer reserve bank account?SEA Rule 15c3-3a, Exhibit A, 17 CFR 240.15c3-3a. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.2.
Under SEA Rule 15c3-3, which margin securities in a customer's account are excess margin securities?SEA Rule 15c3-3(a)(5), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.1.
Which customer securities must a broker-dealer promptly obtain and then keep in its physical possession or control?SEA Rule 15c3-3(b)(1), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 3, task 3.1.
Net capital 16
A broker-dealer buys and sells for its own investment account. After how many such transactions in a calendar year does the net capital rule treat it as a dealer with a $100,000 minimum?SEA Rule 15c3-1(a)(2)(iii), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.1.
A broker-dealer on the aggregate indebtedness standard has been in business for three years. What is the most its aggregate indebtedness may be?SEA Rule 15c3-1(a)(1)(i), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.1.
A carrying member's net capital has stayed below 150 percent of its minimum dollar requirement. After how long does FINRA Rule 4120(b) forbid it to expand its business?FINRA Rule 4120(a)(1) and (b)(1). Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.7.
A firm elects the alternative standard. Its aggregate debit items under the reserve formula are $20,000,000. What is its minimum net capital?SEA Rule 15c3-1(a)(1)(ii), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.1.
A firm holds a Treasury bill with less than three months to maturity. What is the haircut?SEA Rule 15c3-1(c)(2)(vi)(A), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.6.
A firm owns a security that has no ready market. How much of its carrying value is deducted in computing net capital?SEA Rule 15c3-1(c)(2)(vii), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.3.
A firm's proprietary common stocks, all with a ready market, are $400,000 long and $150,000 short. What is the haircut under SEA Rule 15c3-1(c)(2)(vi)(J)?SEA Rule 15c3-1(c)(2)(vi)(J), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.6.
A member's fidelity bond carries a deductible. Which part of the deductible is deducted from net worth in computing net capital?FINRA Rule 4360(c) and SEA Rule 15c3-1(c)(2)(xiv). Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.5.
An introducing firm clears on a fully disclosed basis. It receives customer securities but does not hold them. What is its minimum net capital?SEA Rule 15c3-1(a)(2)(iv), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.1.
SEA Rule 15c3-1(e)(2) bars a withdrawal of equity capital if, after it, net capital would be less than what share of the firm's minimum dollar requirement?SEA Rule 15c3-1(e)(2), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.7.
Under the debt-equity requirements, a firm's subordinated debt and other debt capital may not exceed 70 percent of its debt-equity total for longer than what period?SEA Rule 15c3-1(d), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.7.
The undue concentration deduction applies to a position in one issuer's securities, held more than 11 business days, whose market value is more than what share of net capital before haircuts?SEA Rule 15c3-1(c)(2)(vi)(M), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.6.
What haircut does the net capital rule apply to redeemable shares of a money market fund held by the firm?SEA Rule 15c3-1(c)(2)(vi)(D), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.6.
What is tentative net capital?SEA Rule 15c3-1(c)(15), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.7.
What is the minimum net capital of a broker-dealer that carries customer accounts and receives or holds customer funds or securities?SEA Rule 15c3-1(a)(2)(i), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.1.
Which of these is deducted from net worth as an asset not readily convertible into cash?SEA Rule 15c3-1(c)(2)(iv), 17 CFR 240.15c3-1. Outline: FINRA Series 27 Content Outline (2024), Function 4, task 4.3.
Funding and cash management 5
A clearing firm has a fail to deliver at a registered clearing agency that resulted from a short sale. By when must it close out the position under Rule 204 of Regulation SHO?Regulation SHO, 17 CFR 242.204(a). Outline: FINRA Series 27 Content Outline (2024), Function 5, task 5.1.
A customer buys a security in a cash account and sells it without ever having paid for it in full. What does Regulation T impose?Regulation T, 12 CFR 220.8(c). Outline: FINRA Series 27 Content Outline (2024), Function 5, task 5.1.
A customer sold a security long and the firm has not received it from the customer 10 business days after the settlement date. What does SEA Rule 15c3-3(m) require?SEA Rule 15c3-3(m), 17 CFR 240.15c3-3. Outline: FINRA Series 27 Content Outline (2024), Function 5, task 5.1.
How does Regulation T define the payment period for a purchase in a cash account?Regulation T, 12 CFR 220.2. Outline: FINRA Series 27 Content Outline (2024), Function 5, task 5.1.
Under FINRA Rule 4210(c), what maintenance margin is required on a stock sold short that trades at $5.00 a share or above?FINRA Rule 4210(c)(3). Outline: FINRA Series 27 Content Outline (2024), Function 5, task 5.1.
How this list was compiled: Our own questions, written to FINRA's Financial and Operations Principal Qualification Examination (Series 27) Content Outline, marked 2024 (https://www.finra.org/sites/default/files/Series_27_Outline.pdf, read 2026-10-13): Function 1 financial reporting 25 of 145 questions, Function 2 operations, general securities industry regulations, and preservation of books and records 42, Function 3 customer protection 24, Function 4 net capital 41, Function 5 funding and cash management 13. The bank holds 10, 17, 10, 16 and 5. Every fact was read on 2026-10-13 in the public text the question names: on ecfr.gov, SEA Rules 10b-10, 15c2-4, 15c3-1, 15c3-3 and its Exhibit A, 17a-3, 17a-4, 17a-5, 17a-11 and 17a-13, Regulation SHO Rule 204 and Regulation T; on finra.org, FINRA Rules 1220, 3120, 4110, 4120, 4210, 4360, 4370, 4511, 4522, 4523, 11810 and 11870. Licence: Questions, choices and explanations are original work of this site.
How it works
Each Series 27 practice test question here is our own: 58 on financial reporting, operations and records, customer protection, net capital and funding, in the shares of FINRA's outline. Unofficial: not affiliated with, endorsed by or sponsored by FINRA.
Read the full guide
Five functions, in FINRA's shares
FINRA's outline gives 145 scored questions: financial reporting 25, operations, regulations and records 42, customer protection 24, net capital 41, and funding and cash management 13. This bank holds 10, 17, 10, 16 and 5.
Series 27 study guides
The exam follows the SEC's financial responsibility rules, so the rule texts are the study guide: Rules 15c3-1, 15c3-3, 17a-3, 17a-4, 17a-5, 17a-11 and 17a-13, with Regulation T and FINRA's 4000 series. Every answer links the rule it rests on.
A timed run
Exam mode asks all 58 in 90 minutes, the real pace of 145 in 3 hours and 45 minutes, with 69 percent to pass.
Keep the notice clocks apart: a net capital deficiency is reported the same day, an early warning level within 24 hours.
Two reserve numbers travel together: a monthly computation means a deposit of at least 105 percent.
Questions and answers
What is the Series 27 exam?
FINRA's Financial and Operations Principal exam. Under FINRA Rule 1220, that principal approves the firm's financial reports and supervises its books, records, back office and compliance with the financial responsibility rules.
Is there a study guide for the Series 27 exam?
FINRA's Series 27 content outline is a free PDF listing every task and rule the exam draws on. Paid Series 27 examination study guides exist too. FINRA says it produces only the outline and endorses no course of study.
How many questions are on the Series 27 exam?
155 multiple-choice questions in 3 hours and 45 minutes. 145 are scored and 10 are unidentified pretest questions that do not count.
What is the passing score for the Series 27?
69 percent, by FINRA's content outline, which calls the passing score an absolute standard. FINRA's exam page lists it as 69.
Does the Series 27 have a prerequisite exam?
No. FINRA's page says the Series 27 does not have a corequisite exam. A candidate must be associated with and sponsored by a member firm, and the fee is $235.