Definition
The Series 14 exam, officially titled the Financial and Operations Principal Qualification Examination, is a securities licensing test administered in the United States by the Financial Industry Regulatory Authority (FINRA). It qualifies individuals to serve as a Financial and Operations Principal (FINOP) at a broker‑dealer firm, granting them supervisory authority over the firm’s financial and operational compliance functions.
Overview
The Series 14 exam is one of several qualification examinations required for individuals seeking specific supervisory roles within FINRA‑registered broker‑dealers. Candidates must be sponsored by a FINRA member firm and typically possess prior experience or licensing in the securities industry. Successful completion of the exam, combined with meeting FINRA’s eligibility criteria, enables the holder to assume responsibility for monitoring the firm’s adherence to regulatory standards concerning capital adequacy, recordkeeping, financial reporting, and operational risk management.
Etymology/Origin
The designation “Series 14” follows FINRA’s convention of numbering its qualification examinations sequentially, a practice that began in the 1970s when the organization introduced its first series exams (e.g., Series 7, Series 24). The term “Financial and Operations Principal” reflects the exam’s focus on the dual supervisory responsibilities for a firm’s financial integrity and operational compliance.
Characteristics
| Characteristic | Details |
|---|---|
| Administering body | Financial Industry Regulatory Authority (FINRA) |
| Purpose | Qualify individuals to act as Financial and Operations Principals (FINOP) at broker‑dealer firms |
| Prerequisites | FINRA sponsorship; generally requires prior securities licensing or relevant professional experience |
| Exam format | Computer‑based test consisting of multiple‑choice questions (approximately 125 items) |
| Length | 3.5 hours of testing time |
| Passing score | 70 % (minimum number of correct responses required to pass) |
| Content areas | • Regulatory framework (SEC, FINRA rules) • Capital requirements and net capital calculations • Financial statements and reporting • Recordkeeping and reporting obligations • Operational risk and internal controls • Supervision of firm activities |
| Frequency of offering | Administered year‑round at designated testing centers; candidates may schedule an appointment through FINRA’s testing provider |
| Continuing education | FINOPs must satisfy FINRA’s ongoing regulatory element and securities industry continuing education (CE) requirements to maintain the qualification |
Related Topics
- FINRA (Financial Industry Regulatory Authority) – The self‑regulatory organization that oversees securities licensing and compliance in the United States.
- Series 7 exam – General securities representative qualification; often a prerequisite for supervisory exams.
- Series 24 exam – Principal qualification for supervising brokerage operations, distinct from the financial focus of Series 14.
- Broker‑Dealer – A firm licensed to trade securities on behalf of its customers, subject to FINRA regulation.
- Financial and Operations Principal (FINOP) – The supervisory role enabled by passing the Series 14 exam, responsible for a firm’s financial and operational compliance.
- SEC (Securities and Exchange Commission) – Federal agency whose rules are incorporated into the Series 14 curriculum.
Note: The information presented reflects the current understanding of the Series 14 exam as defined by FINRA and other regulatory publications.