Quick Answer
Categories span representative-level exams (Series 6, 7, 79, 86/87, 57, 82, 99) and principal-level exams (Series 24, 9/10, 27, 28, 4, 16, 26). Representatives pass Securities Industry Essentials (SIE) plus a top-off exam. Series 24 excludes specialized supervision: options need Series 4, net capital needs Series 27 (or 28 for introducing firms), and research approval needs Series 16.
The Series 24 has to know which registered category covers which activity. A principal who recommends an option strategy to a customer without holding a Series 4 has just engaged in the firm's failure to supervise.
Representative-Level Categories
Every representative must pass the SIE exam plus a top-off specific to the activity they perform. The FINRA registration rule sets no required order between the two exams; it only requires both to be passed before the representative registration becomes effective. Because the SIE needs no firm sponsorship while every top-off does, most candidates sit for the SIE first as a practical matter, not a rule requirement:
| Category | Top-Off Exam | Scope |
|---|---|---|
| General Securities Representative | Series 7 | Full range of securities products |
| Investment Company and Variable Contracts Products Representative | Series 6 | Mutual funds, variable annuities, variable life |
| Investment Banking Representative | Series 79 | Underwriting, M&A, advisory work on debt and equity offerings |
| Research Analyst | Series 86/87 | Research reports on equity securities |
| Securities Trader | Series 57 | Proprietary trading and market making |
| Private Securities Offerings Representative | Series 82 | Private placements of securities |
| Operations Professional | Series 99 | Covered back-office functions (settlement, clearance, customer assets) |
- Holding the SIE alone does not allow a person to do any registered-rep work; the top-off must be passed within the time limits set by the continuing education requirement
- A representative may hold multiple top-offs (a Series 7 plus a Series 79) to cover multiple business lines
Exam Tip: Gotchas
- The SIE is a prerequisite, not a stand-alone license. A person who passes the SIE is not yet a registered representative; they cannot sell securities until the relevant top-off is passed and Form U4 is filed and approved.
Principal-Level Categories
A principal supervises registered representatives in their corresponding business line. Principal categories:
| Category | Exam | Scope |
|---|---|---|
| General Securities Principal | Series 24 | Supervises a broker-dealer's overall business |
| Investment Banking Principal | Series 24 + Series 79 prerequisite | Supervises investment banking activity |
| General Securities Sales Supervisor | Series 9 / Series 10 | Supervises retail sales activity |
| Financial and Operations Principal (FINOP) | Series 27 | Net capital, customer reserve, FOCUS reports |
| Introducing Broker-Dealer FINOP | Series 28 | FINOP role for introducing firms only |
| Registered Options Principal (ROP) | Series 4 | Supervises options activity |
| Supervisory Analyst | Series 16 | Approves research-report content |
| Investment Company and Variable Contracts Products Principal | Series 26 | Supervises mutual fund and variable products business |
| Compliance Officer (CCO) | Series 14 (NYSE) / Series 24 elsewhere | Supervises compliance program |
A General Securities Principal may also supervise mutual-fund and variable-products business. Series 26 is a narrower alternative for a principal limited to that business, not an additional credential every Series 24 principal must obtain.
Think of it this way: The Series 24 is the broad-business principal license, but specialized activities have their own principal categories. A firm that runs an options desk needs a Series 4 ROP regardless of how many Series 24 principals it has. A firm that publishes research needs a Series 16 Supervisory Analyst to approve the reports.
Exam Tip: Gotchas
- The Series 24 alone does not qualify a person to supervise every business line. Options supervision requires the Series 4 (Registered Options Principal); net-capital supervision requires the Series 27 (FINOP); research approval requires the Series 16 (Supervisory Analyst). A Series 24 principal must hold these additional licenses or have qualified principals in those roles.
- Series 27 vs. Series 28. The Series 27 covers any FINOP role; the Series 28 is limited to introducing firms (firms that do not carry customer accounts or hold customer funds and securities).
Reciprocal/Automatic Operations Professional Registration
Persons who register on or after October 1, 2018 in any of the following categories are automatically qualified to register as an Operations Professional without taking the Series 99:
- General Securities Representative
- Investment Company and Variable Contracts Products Representative
- Registered Options Principal
- General Securities Sales Supervisor
- Supervisory Analyst
- General Securities Principal
- Investment Company and Variable Contracts Products Principal
- Financial and Operations Principal
- Introducing FINOP
- Municipal Fund Securities Limited Principal
- Municipal Securities Principal
The reciprocal-qualification path saves the firm from forcing a Series 24 principal who already covers operations supervision from having to pass an additional Series 99 exam.
Two-Principal Minimum
Every firm (other than a member with only one associated person) must have at least two officers or partners registered as General Securities Principals, or two registered in a principal category matching the firm's scope of business:
- The two-principal rule is the structural floor for supervisory continuity
- A firm doing options business needs a Registered Options Principal in addition to the two-principal minimum
- A firm doing research publication needs a Supervisory Analyst in addition
Exam Tip: Gotchas
- The two-principal minimum is a floor, not a ceiling. Firms with options, research, or specialized business lines need additional principal coverage on top of the two General Securities Principals.
What Should You Check on Exam Day?
- Can you match each specialized activity to its required principal license: options to Series 4, net capital to Series 27 or 28, research approval to Series 16?
- Do you know the Securities Industry Essentials exam alone does not qualify a person to sell securities without a top-off exam and an approved Form U4?
- Can you state that persons registering on or after October 1, 2018 in listed categories are automatically qualified as an Operations Professional?
- Do you know the two-principal minimum is a floor, so firms with options or research need additional principal coverage on top of it?