A firm claimed an exemption from SEA Rule 15c3-3 for its whole fiscal year. Which report does it file with its annual financial report in place of a compliance report?SEA Rule 17a-5(d)(1), 17 CFR 240.17a-5. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.3.
A firm dismisses the independent public accountant that audited its annual reports. How soon must it file notice of the change?SEA Rule 17a-5(f)(3), 17 CFR 240.17a-5. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
A firm on the aggregate indebtedness standard has net capital of $40,000. Above what level of aggregate indebtedness is notice due within 24 hours under SEA Rule 17a-11(b)(1)?SEA Rule 17a-11(b), 17 CFR 240.17a-11. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
A firm with a $50,000 minimum requirement computes net capital of $58,000. Does SEA Rule 17a-11 call for a notice?SEA Rule 17a-11(b)(3), 17 CFR 240.17a-11. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
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Financial reporting, continued
A firm's auditor tells it of a material weakness. After giving the 24-hour notice, how soon must the firm send a report of what it is doing to correct it?SEA Rule 17a-11(d), 17 CFR 240.17a-11. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
A member that operates under a paragraph (k) exemption wants to start a business that would disqualify it from the exemption. What comes first?FINRA Rule 1020. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
An introducing firm's fiscal year ends on November 30. Beyond its calendar-quarter FOCUS reports, what does SEA Rule 17a-5(a) require?SEA Rule 17a-5(a), 17 CFR 240.17a-5. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.2.
Over 30 calendar days a firm's net withdrawals of equity capital come to $600,000, which is 22 percent of its excess net capital. What notice does SEA Rule 15c3-1(e)(1) require?SEA Rule 15c3-1(e)(1), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
The unaudited statements a firm furnishes to customers under SEA Rule 17a-5(c)(3) are dated how long after the audited statements?SEA Rule 17a-5(c)(3), 17 CFR 240.17a-5. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
Within how many days after its fiscal year end must a broker-dealer furnish the audited statements that SEA Rule 17a-5(c) requires for customers?SEA Rule 17a-5(c)(2), 17 CFR 240.17a-5. Outline: FINRA Series 28 Content Outline (2024), Function 1, task 1.4.
Operations, regulations and records 15
A branch office supervises no other office or location. How often must the member inspect it under FINRA Rule 3110(c)?FINRA Rule 3110(c). Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.3.
A confirmation does not show the time of the trade. What must it say instead under SEA Rule 10b-10(a)(1)?SEA Rule 10b-10(a)(1), 17 CFR 240.10b-10. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.1.
A customer's account is moving to another firm. The carrying member disputes the money balance in the account. May it refuse to validate the transfer instruction?FINRA Rule 11870(d). Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.1.
A firm preserves its records on an electronic recordkeeping system that is not in a non-rewriteable, non-erasable format. What must the system maintain instead under SEA Rule 17a-4(f)?SEA Rule 17a-4(f), 17 CFR 240.17a-4. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.2.
A registered representative and her member firm dispute a commission owed on a firm trade. Where does FINRA Rule 13200 send the dispute?FINRA Rule 13200. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.3.
A seller who received a buy-in notice answers in writing that the securities are in transit and gives the certificate numbers. What must the buyer do?FINRA Rule 11810. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.1.
An introducing broker-dealer has retail customers. How often must its anti-money laundering program be tested independently?FINRA Rule 3310(c). Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.3.
At an introducing member, how many people does it take to serve as the Introducing FinOp, the Principal Financial Officer and the Principal Operations Officer?FINRA Rule 1220(a)(4). Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.3.
For how long must a broker-dealer keep originals of communications it receives and copies of those it sends about its business as such?SEA Rule 17a-4(b), 17 CFR 240.17a-4. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.2.
How long must a firm keep the employment application of an associated person who has left?SEA Rule 17a-4(e)(1), 17 CFR 240.17a-4. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.2.
How often must a broker-dealer prepare trial balances and its computations of aggregate indebtedness and net capital under SEA Rule 17a-3(a)(11)?SEA Rule 17a-3(a)(11), 17 CFR 240.17a-3. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.2.
SEA Rule 17a-8 holds broker-dealers to the currency reporting rules of the Treasury. Above what amount of currency in a transaction is a report filed?31 CFR 1010.311; SEA Rule 17a-8. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.3.
What is the most a member may give in a year to an employee of another firm in relation to that firm's business, under FINRA Rule 3220?FINRA Rule 3220(a). Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.3.
Which broker-dealers must make the record of their credit, market and liquidity risk management controls under SEA Rule 17a-3(a)(23)?SEA Rule 17a-3(a)(23), 17 CFR 240.17a-3. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.2.
Which record shows, for each security as of the clearance dates, every long and short position the firm carries and where the long securities are?SEA Rule 17a-3(a)(5), 17 CFR 240.17a-3. Outline: FINRA Series 28 Content Outline (2024), Function 2, task 2.2.
Net capital 16
A $5,000 firm in its third year has aggregate indebtedness of $600,000. What net capital does the aggregate indebtedness standard require?SEA Rule 15c3-1(a)(1)(i), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.7.
A broker introduces accounts on a fully disclosed basis and never receives customer funds or securities. What is its minimum net capital?SEA Rule 15c3-1(a)(2)(vi), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.1.
A commission receivable from another broker-dealer has been outstanding for 45 days. How does the net capital rule treat it?SEA Rule 15c3-1(c)(2)(iv), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.3.
A firm is exempt from the customer protection rule under paragraph (k)(2)(i) of SEA Rule 15c3-3. What minimum net capital does that status carry?SEA Rule 15c3-1(a)(2)(ii), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.1.
A firm's ledgers are in such disorder that it cannot compute its net capital. How does SEA Rule 15c3-1 class the firm?SEA Rule 15c3-1(c)(16), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.7.
A firm's only business is buying, selling and redeeming mutual fund shares for customers directly with the funds, on other than a subscription way basis. What is its minimum net capital?SEA Rule 15c3-1(a)(2)(v), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.1.
A firm's proprietary account is long $200,000 and short $40,000 of common stocks that have a ready market. What is the haircut?SEA Rule 15c3-1(c)(2)(vi)(J), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.6.
A member finds at noon that it is below its required net capital. What does FINRA Rule 4110(b)(1) tell it to do, unless FINRA permits otherwise?FINRA Rule 4110(b)(1). Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.7.
A member's net capital requirement is $50,000. What is the least fidelity bond coverage FINRA Rule 4360 allows it?FINRA Rule 4360. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.5.
A stock is quoted in an inter-dealer quotation system by only two independent market makers. What haircut applies to a firm's position in it?SEA Rule 15c3-1(c)(2)(vi)(K), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.6.
An introducing firm receives a customer's stock certificate that is meant for the clearing firm. To promptly forward it within the meaning of SEA Rule 15c3-1, by when must the firm send it on?SEA Rule 15c3-1(c)(10), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.1.
An owner contributed equity capital to a member eight months ago and wants it back. What does FINRA Rule 4110(c)(1) say?FINRA Rule 4110(c)(1). Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.7.
How does the net capital rule treat a free shipment of securities that has been outstanding for eight business days?SEA Rule 15c3-1(c)(2)(iv), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.5.
The undue concentration charge on an equity position applies only to the market value above which amount?SEA Rule 15c3-1(c)(2)(vi)(M), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.6.
What does the net capital rule mean by a ready market for a security?SEA Rule 15c3-1(c)(11), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.6.
Which liability is left out of aggregate indebtedness?SEA Rule 15c3-1(c)(1), 17 CFR 240.15c3-1. Outline: FINRA Series 28 Content Outline (2024), Function 3, task 3.2.
Customer protection, funding and cash 10
A customer does not meet a Regulation T margin call in full within the required time. What must the creditor do?Regulation T, 12 CFR 220.4(d). Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.2.
A customer's margin loan met Regulation T when it was made. The stock then falls and the customer's equity shrinks. What does 12 CFR 220.3(c) say about the credit?Regulation T, 12 CFR 220.3(c). Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.2.
A firm takes part in a best-efforts offering with no minimum. What does SEA Rule 15c2-4 require it to do with investors' payments?SEA Rule 15c2-4, 17 CFR 240.15c2-4. Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.1.
After the payment period a cash account customer still owes $600 on a purchase. Must the firm cancel or liquidate the transaction under Regulation T?Regulation T, 12 CFR 220.8(b)(4). Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.1.
How many temporary subordination agreements may a firm enter in a 12 month period, and for what stated term?SEA Rule 15c3-1d(c)(5), 17 CFR 240.15c3-1d. Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.3.
Under the paragraph (k)(2)(i) exemption from SEA Rule 15c3-3, through what does a firm run its customer transactions?SEA Rule 15c3-3(k)(2)(i), 17 CFR 240.15c3-3. Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.1.
What is the shortest term a subordination agreement may have and still be satisfactory, apart from a temporary one?SEA Rule 15c3-1d, 17 CFR 240.15c3-1d. Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.3.
What margin does Regulation T require on a customer's purchase of a margin equity security?Regulation T, 12 CFR 220.12. Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.2.
When must a customer be told in writing that a carrying agreement exists and how it divides the two firms' duties?FINRA Rule 4311(d). Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.1.
Which duty must a carrying agreement leave with the carrying firm under FINRA Rule 4311(c)(2)?FINRA Rule 4311(c). Outline: FINRA Series 28 Content Outline (2024), Function 4, task 4.1.
How this list was compiled: Our own questions, written to FINRA's Introducing Broker-Dealer Financial and Operations Principal Qualification Examination (Series 28) Content Outline, marked 2024 (https://www.finra.org/sites/default/files/Series_28_Outline.pdf, read 2026-10-14): Function 1 financial reporting 16 of 95 questions, Function 2 operations, general securities industry regulations, and preservation of books and records 30, Function 3 net capital 31, Function 4 customer protection, funding and cash management 18. The bank holds 10, 15, 16 and 10. Every fact was read on 2026-10-14 in the public text the question names: SEA Rules 15c3-1 and its Appendix D, 15c3-3, 15c2-4, 17a-3, 17a-4, 17a-5, 17a-11 and 10b-10, Regulation T and the Treasury's currency reporting rule on ecfr.gov, and FINRA Rules 1020, 1220, 3110, 3220, 3310, 4110, 4311, 4360, 11810, 11870 and 13200 on finra.org. Licence: Questions, choices and explanations are original work of this site.
How it works
This Series 28 practice test asks 51 questions of our own for the Introducing Broker-Dealer Financial and Operations Principal exam, each naming its rule. Unofficial practice, not affiliated with FINRA. Not investment advice.
Read the full guide
Where the 95 questions fall
FINRA's outline gives the Series 28 95 questions: 16 on financial reporting, 30 on operations, industry regulations and records, 31 on net capital, and 18 on customer protection, funding and cash management. Here the split is 10, 15, 16 and 10.
An introducing firm's numbers
Questions stay on the side of a firm that does not carry accounts: the $5,000, $25,000 and $100,000 net capital classes, the paragraph (k) exemptions, carrying agreements and subordinated loans.
Aggregate indebtedness over 1,200 percent of net capital, or net capital under 120 percent of the minimum, means notice within 24 hours.
Equity capital stays in for one year under FINRA Rule 4110, unless FINRA permits a withdrawal in writing.
Questions and answers
What does a Series 28 principal do?
The Introducing Broker-Dealer Financial and Operations Principal prepares and keeps the books and records of a firm that does not carry customer accounts or hold customer funds or securities.
How many questions does the Series 28 have?
95, all multiple choice, with 2 hours to answer them. The outline says there is no penalty for guessing.
What is a passing score on the Series 28?
69 percent. The outline describes the passing score as the minimum number of questions a candidate has to answer correctly, set as an absolute standard.
Is the Series 28 the same as the Series 27?
No. FINRA describes the Series 28 as an abbreviated version of the Series 27. Broker-dealers with a $250,000 minimum net capital requirement need a Series 27 principal.
Does the Series 28 have a prerequisite?
No. FINRA's page says the Series 28 does not have a corequisite exam. The candidate must be associated with and sponsored by a member firm. The fee is $195.