100+ Free Series 23 Practice Questions

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Under FINRA Rule 3110, every member firm must designate which of the following as its Office of Supervisory Jurisdiction (OSJ)?

Any branch office that processes transactions

Each location at which one or more of the listed supervisory functions (such as final approval of new accounts or order execution) take place

Only the firm's headquarters

Any office where more than five registered representatives work

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2026 Statistics

Key Facts: Series 23 Exam

100

Questions

FINRA

2h 30m

Exam Duration

FINRA

70%

Passing Score

70/100

$135

Exam Fee

FINRA

S9 + S10

Prerequisites

Required to register

60-100 hrs

Study Time

Recommended

The Series 23 has 100 questions in 2h 30m, requiring 70% to pass. The $135 GP Module is a Series 24 alternative for existing Series 9/10 sales supervisors — passing it grants full General Securities Principal scope without retaking sales supervision content.

Sample Series 23 Practice Questions

Try these sample questions to test your Series 23 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under FINRA Rule 3110, every member firm must designate which of the following as its Office of Supervisory Jurisdiction (OSJ)?

A.Any branch office that processes transactions

B.Each location at which one or more of the listed supervisory functions (such as final approval of new accounts or order execution) take place

C.Only the firm's headquarters

D.Any office where more than five registered representatives work

Explanation: FINRA Rule 3110(f) defines an OSJ as any office where any of the enumerated supervisory functions occur — including final approval of new accounts, review of customer orders, custody of customer funds or securities, final acceptance of new representatives, or maintaining final approval over advertising. Headcount and headquarters status are not what trigger OSJ designation; the listed activities do.

2A general securities principal at a clearing firm must verify that the firm maintains minimum net capital of at least:

A.$5,000

B.$50,000

C.$100,000

D.$250,000

Explanation: Under SEA Rule 15c3-1, a broker-dealer that carries customer accounts (a clearing firm) must maintain minimum net capital of $250,000. Introducing firms that do not hold customer funds or securities and clear on a fully disclosed basis have a $50,000 minimum, while firms operating under the (k)(2)(i) exemption have $5,000.

3Reg BI imposes four separate obligations on a broker-dealer recommending a securities transaction to a retail customer. Which of the following is NOT one of those obligations?

A.Disclosure Obligation

B.Care Obligation

C.Best Interest Pricing Obligation

D.Conflict of Interest Obligation

Explanation: Regulation Best Interest (effective June 30, 2020) has four component obligations: Disclosure, Care, Conflict of Interest, and Compliance. There is no separate 'Best Interest Pricing Obligation.' Pricing is one of many factors a registered person considers under the Care Obligation, but it is not a stand-alone Reg BI obligation.

4Under FINRA Rule 2210, retail communications that promote a registered investment company must generally be filed with FINRA's Advertising Regulation Department:

A.At least 10 business days before first use

B.Within 10 business days of first use

C.At least 30 days before first use

D.Only upon request from FINRA staff

Explanation: Rule 2210(c) generally requires that retail communications concerning registered investment companies be filed with FINRA within 10 business days of first use. New member firms (in their first year) must pre-file 10 business days before first use, and certain categories such as bond mutual fund volatility ratings require pre-filing as well.

5FINRA Rule 3220 limits gifts that a registered person may give to any person in connection with the business of the recipient's employer to no more than:

A.$50 per individual per year

B.$100 per individual per year

C.$250 per individual per year

D.$500 per individual per year

Explanation: FINRA Rule 3220 (the gifts and gratuities rule) prohibits members and associated persons from giving anything of value in excess of $100 per individual per year where the payment is in relation to the business of the recipient's employer. Records of all such gifts must be retained.

6Under SEC Rule 17a-4, customer account records must be preserved for at least:

A.3 years, with the first 2 years in an easily accessible place

B.6 years, with the first 2 years in an easily accessible place

C.5 years, with the first year in an easily accessible place

D.The life of the account plus 6 years

Explanation: SEC Rule 17a-4(b) generally requires that books and records — including blotters, ledgers, customer account records, order tickets, and confirmations — be preserved for 6 years, with the first 2 years in an easily accessible place. Some categories (such as compliance manuals and audit work papers) have shorter 3-year retention.

7A research analyst report on a covered company is being reviewed before publication. Under FINRA Rule 2241, the report must:

A.Be reviewed and approved by the issuer's investment banking team

B.Be reviewed by a supervisory analyst (not investment banking) for substantive content

C.Receive prior approval from the SEC's Division of Trading and Markets

D.Only be approved by the registered representative who will distribute it

Explanation: FINRA Rule 2241 requires that research reports be reviewed by a supervisory analyst or appropriately qualified principal who is independent of the investment banking function. Investment banking personnel are expressly prohibited from reviewing or approving research content other than for narrow factual accuracy in limited circumstances. The Chinese Wall protects research independence.

8A broker-dealer must file a Currency Transaction Report (CTR) with FinCEN when:

A.Any cash transaction occurs in a customer account

B.A single cash transaction exceeds $5,000

C.Cash transactions by or on behalf of one customer exceed $10,000 in a single business day

D.A customer makes any wire transfer over $3,000

Explanation: Under the Bank Secrecy Act, a CTR (FinCEN Form 112) must be filed for cash transactions aggregating more than $10,000 by or on behalf of the same person in one business day. The $3,000 threshold relates to recordkeeping for funds transfers (the Travel Rule), not CTR filing. Suspicious activity is reported separately on a SAR.

9FINRA Rule 3310 requires every broker-dealer's AML compliance program to be independently tested:

A.Quarterly

B.Annually for firms that execute customer transactions; every two years for firms that do not

C.Every five years

D.Only when FINRA examiners request testing

Explanation: FINRA Rule 3310(c) requires annual independent testing of the AML program for member firms that execute transactions for customers or otherwise hold customer accounts. Firms that do not execute transactions for or hold customer accounts may test every two years. The test must be performed by independent personnel — internal staff who are not the AML compliance officer or under that officer's supervision, or an independent third party.

10Under Reg T, the initial margin requirement for the purchase of a marginable equity security is:

A.25% of the current market value

B.30% of the current market value

C.50% of the current market value

D.100% of the purchase price

Explanation: Federal Reserve Board Regulation T sets the initial margin requirement at 50% of the purchase price for marginable equity securities. The 25% figure is FINRA's minimum maintenance margin under Rule 4210. Firms may impose higher 'house' requirements above the regulatory minimums.

About the Series 23 Exam

The Series 23 (GP Module) is a 100-question add-on for candidates who already hold Series 9 and Series 10. Together, S9 + S10 + S23 confer the same General Securities Principal authority as the Series 24, covering supervision of investment banking, trading, financial responsibility, and recordkeeping at a broker-dealer.

Questions

100 scored questions

Time Limit

2 hours 30 minutes

Passing Score

70%

Exam Fee

$135 (FINRA)

Series 23 Exam Content Outline

25%

Supervision of Investment Banking, Underwriting, Research and Trading

Underwriting due diligence, syndicate procedures, research analyst supervision under Rule 2241, MNPI controls, Chinese Wall, market making, Reg SHO, best execution, and Rule 5210 trading practices.

25%

Supervision of General Broker-Dealer Activities

Rule 3110 written supervisory procedures, OSJ designation, branch inspections, Reg S-P privacy, Reg S-AM affiliate marketing, AML Rule 3310 (CIP, CTR, SAR), recordkeeping under 17a-3/17a-4, business continuity, and Form U4/U5 amendments.

25%

Supervision of Sales Activities

Reg BI obligations and Form CRS, Rule 2111 suitability (institutional 2111(b)), Rule 2210 communications review (correspondence/retail/institutional, 30-day window), advertising pre-approval, customer complaints under Rule 4530, OBA (3270), PST (3280), and Rule 3220 $100 gift limit.

15%

Financial Responsibility

SEA Rule 15c3-1 net capital ($250K clearing / $50K introducing), SEA Rule 15c3-3 customer protection (segregation, possession or control, reserve formula), Reg T 50% initial / 25% maintenance margin, and FINRA 4210 pattern day-trader $25K equity rule.

10%

Recordkeeping and Reporting

FINRA Rule 4511 books and records, SEC 17a-3/17a-4 retention (3-year and 6-year categories), Rule 4530 reportable events and customer complaint statistics, FOCUS reporting, and supervisory documentation requirements.

How to Pass the Series 23 Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours 30 minutes
Exam fee: $135

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Series 23 Study Tips from Top Performers

1Map every scenario to a specific FINRA rule number (3110 supervision, 2210 communications, 2111 suitability, 3310 AML) — principal exams test rule application, not vocabulary.

2Master the financial responsibility rules: 15c3-1 net capital thresholds ($250K clearing / $50K introducing), 15c3-3 customer protection (possession or control, reserve formula), and Reg T margin (50% initial / 25% maintenance).

3Know the Reg BI four obligations cold: Disclosure, Care, Conflict of Interest, and Compliance — and how Form CRS delivery timing differs from account documents.

4Memorize record retention periods: 17a-3/17a-4 splits records into 3-year and 6-year categories; the first 2 years must be in an easily accessible place.

5Practice institutional vs. retail communications under Rule 2210: who can pre-approve, the 30-day post-use principal review window for institutional, and which categories require principal pre-approval before first use.

Frequently Asked Questions

How does the Series 23 differ from the Series 24?

Both confer General Securities Principal authority. The Series 24 is a single 150-question stand-alone exam. The Series 23 is a 100-question add-on for those who already hold Series 9 and Series 10 — it skips sales-supervision content already tested in S9/S10 and only adds the general principal scope (IB, trading, financial responsibility, recordkeeping).

What are the prerequisites for the Series 23?

You must already hold BOTH Series 9 (Options) AND Series 10 (General Securities Sales Supervisor). The SIE is also required as a baseline. Without S9 + S10, you cannot register for the Series 23 — take the Series 24 instead.

What does the Series 23 exam cost and how long is it?

The Series 23 fee is $135. The exam is 100 multiple-choice questions over 2 hours 30 minutes, with a 70% passing score. It is administered by FINRA at Prometric test centers.

Who should take the Series 23 instead of the Series 24?

Existing sales supervisors who already passed Series 9 and Series 10 and now need full General Securities Principal authority. The S23 is shorter, cheaper ($135 vs $245), and avoids retaking sales-supervision material. New principals without S9/S10 should take the Series 24.

What firm sponsorship is required?

Like all FINRA principal exams, the Series 23 requires sponsorship by a FINRA member firm, which files Form U4 and opens a 120-day enrollment window. Candidates must also complete fingerprinting under Rule 1010.

How long should I study for the Series 23?

Most candidates need 60–100 hours over 4–8 weeks. The exam is principal-level — focus on Rule 3110 supervisory procedures, Reg BI, 15c3-1 net capital, 15c3-3 customer protection, and AML/CIP/SAR rather than memorizing rep-level facts.