Welcome to this overview of the Series 26 exam!
If you need help studying for the Series 26 exam or just want some more information about what the test is like, you’ve come to the right place.
Test Eligibility
Before you can register to take the Series 26 exam, you’ll need to be sponsored by either a FINRA member firm or an SRO member firm.
Once you’ve confirmed sponsorship, you’re set to begin the registration process!
What’s on the Series 26 Exam?
First, let’s talk about the questions on the test. There are 120 multiple-choice questions total, but only 110 of the questions will count toward your score. Why is that?
The 10 unscored questions on the Series 26 exam are called “pretest” questions. These are added to the tests to determine if they’re good enough questions to add to future versions of the test.
The trick is that you won’t have any way of knowing which questions are scored and which ones are pretest. They will appear just like the scored questions throughout the test.
The time limit for the exam is 2 hours and 45 minutes. There aren’t any scheduled breaks, but you’re free to take restroom breaks as needed.
Let’s take a closer look at the different sections of the Series 26 exam.
1. PERSONNEL MANAGEMENT ACTIVITIES AND REGISTRATION OF THE BROKER-DEALER
16 scored questions
- Conducting personnel management activities and administering the registration of the broker-dealer and associated persons in the CRD system
- Providing training and education on securities industry structure, rules and regulations, product characteristics, and firm policies
2. SUPERVISES ASSOCIATED PERSONS AND OVERSEES SALES PRACTICES
49 scored questions
- Monitoring, supervising, and documenting the sales activities of associated persons
- Monitoring, reviewing, and approving communications with the public
- Supervising recommendations and the handling of customers’ accounts and transactions for appropriate disclosures
- Supervising compliance with FINRA’s cash and non-cash compensation rules
- Reviews and approving outside business and personal financial activities of associated persons
- Taking action regarding the conduct of associated persons
3. OVERSEES COMPLIANCE AND BUSINESS PROCESSES OF THE BROKER DEALER AND ITS OFFICES
45 scored questions
- Supervising the firm’s operational processes
- Monitoring, identifying, and reporting suspicious activities consistent with regulatory and firm requirements
- Developing, implementing, and testing the adequacy of internal controls
- Performing required office inspections
- Proper handling, resolution, and reporting of customer complaints
- Supervising introduction, maintenance, and reporting requirements of products/business lines and financial responsibility compliance
How to Register
Once you’ve ensured that you meet all of the eligibility requirements, your firm will register you for the exam via the CRD program.
A testing fee of $150 will need to be fully paid before you can sit for the exam.
Series 26 Exam Study Guide and Flashcards
Get practice questions, detailed study lessons, and complex subjects broken down into easily understandable concepts.
Exam Scores
The test is scored using a the Angoff method. Here’s how it works:
The Angoff method involves a group of subject-matter experts taking an educated guess at the percentage of candidates who would correctly answer each question on the test. These estimates are then averaged to set a cut-off score, which test-takers must meet or exceed to pass.
This method aims to ensure the pass threshold reflects the level of knowledge or skill that is deemed minimally acceptable for a particular profession or field.
To pass, you’ll need to answer at least 70% of the scored questions correctly.
Retaking the Exam
If you didn’t get a passing score on your first try, that’s okay! You can retake the test after a 30-day waiting period.
Keep in mind that you will have to pay the full testing fee every time you retake the test.
FAQs
How many questions are on the Series 26 exam?
The exam contains 120 questions.
How hard is the Series 26 exam?
The exam is considered to be challenging, but not extremely difficult.
What is the time limit for the Series 26 exam?
The exam is timed at 2 hours and 45 minutes.
What is the passing score for the Series 26 exam?
You’ll need to answer at least 70% of the questions correctly to pass.
How much does the Series 26 exam cost?
The testing fee is $150.