Series 99 Exam for Financial Industry Regulatory Authority (FINRA) Latest Update

Series 99 Exam for Financial Industry Regulatory Authority (FINRA) Latest Update

The Series 99 exam, officially known as the Operations Professional Exam, is a crucial certification offered by the Financial Industry Regulatory Authority (FINRA). Designed for individuals working in critical operational roles within broker-dealer firms, the Series 99 exam assesses the knowledge and competency required to execute essential functions that maintain the integrity and efficiency of securities operations. This certification has become increasingly relevant for professionals aiming to specialize in the operational aspects of financial services. Here is a comprehensive breakdown of the Series 99 exam, including its structure, content, eligibility requirements, permitted activities, and preparation strategies, along with the latest updates as of 2025.

Purpose of the Series 99 Exam

The Series 99 exam serves to certify entry-level professionals responsible for various operational functions within broker-dealer firms. These roles are integral to the smooth functioning of financial institutions and include tasks such as managing customer accounts, handling securities and funds, ensuring compliance with financial regulations, and overseeing internal control processes. The certification is designed to uphold high ethical standards and promote robust knowledge of the securities industry, ensuring that professionals in operational roles can effectively support their firms while adhering to regulatory guidelines.

Exam Structure and Content

The Series 99 exam consists of 50 multiple-choice questions divided into two major job functions:

1. Knowledge Associated with the Securities Industry and Broker-Dealer Operations (F1)

This section includes 35 questions and covers a wide range of topics essential for operational roles. Candidates must demonstrate proficiency in areas such as:

• Customer onboarding and account maintenance

• Financial control, including ledger management and treasury functions

• Receipt and delivery of securities and funds

• Account transfers and reconciliation

• Settlement processes for trades

This portion of the exam emphasizes the technical and procedural aspects of operations, requiring candidates to understand the mechanics and regulations governing broker-dealer activities.

2. Professional Conduct and Ethical Considerations (F2)

The second section consists of 15 questions focusing on ethical practices and regulatory compliance. Topics include:

• Understanding and adhering to FINRA rules and guidelines

• Anti-money laundering (AML) and fraud detection

• Information security and data privacy

• Ethical decision-making in operational contexts

This section is critical for evaluating a candidate’s ability to navigate complex ethical scenarios and maintain compliance with industry standards.

Candidates are allotted 1 hour and 30 minutes to complete the exam and must achieve a passing score of 68% to earn the certification.

Eligibility Requirements

To sit for the Series 99 exam, candidates must meet the following criteria:

1. Sponsorship by a FINRA Member Firm: Candidates must be sponsored by a FINRA member firm or another applicable self-regulatory organization (SRO) member firm. This requirement ensures that candidates have a formal association with an entity subject to FINRA oversight.

2. Completion of the SIE Exam: The Securities Industry Essentials (SIE) exam is a corequisite for the Series 99 exam. While candidates can take the SIE exam either before or after the Series 99, both must be passed to qualify for the Operations Professional registration. The SIE exam assesses general knowledge of the securities industry and serves as a foundation for more specialized exams like the Series 99.

Permitted Activities for Series 99 Holders

Individuals who successfully pass the Series 99 exam are authorized to perform a range of operational functions within broker-dealer firms. These activities include:

• Maintaining and updating customer account data and documentation

• Managing the collection, reinvestment, and disbursement of funds

• Handling the receipt and delivery of securities and funds

• Facilitating account transfers and ensuring accurate reconciliation

• Overseeing financial controls, such as managing the general ledger and treasury functions

• Preparing and filing financial regulatory reports

• Defining and approving business requirements for trading and sales systems

• Establishing and maintaining information security policies related to operational functions

These responsibilities highlight the critical role of operations professionals in supporting the financial system’s infrastructure and ensuring compliance with regulatory standards.

Recent Updates to the Series 99 Exam

As of January 2025, there have been no significant changes to the structure or content of the Series 99 exam. However, FINRA periodically reviews its qualification exams to ensure they remain relevant and reflect the evolving regulatory landscape. Candidates are encouraged to stay updated by regularly checking FINRA’s official website for any announcements regarding changes to exam requirements, content outlines, or policies.

Preparation Strategies for the Series 99 Exam

Preparing for the Series 99 exam requires a focused and strategic approach. Here are some key steps to help candidates succeed:

1. Understand the Exam Content Outline

FINRA provides a detailed content outline for the Series 99 exam, which serves as a roadmap for preparation. Candidates should thoroughly review this outline to understand the topics and subtopics covered in each section.

2. Use Reputable Study Materials

Investing in high-quality study materials is essential for effective preparation. Reputable providers such as ExamFX offer comprehensive training programs, including textbooks, online courses, practice exams, and interactive learning tools. These resources are designed to cover the exam’s content in depth and simulate the testing experience.

3. Take Practice Exams

Practice exams are invaluable for assessing readiness and identifying areas that require further study. By simulating real exam conditions, candidates can build confidence, improve time management, and become familiar with the question format.

4. Focus on Weak Areas

After taking practice exams, candidates should analyze their performance to pinpoint weak areas. Allocating additional study time to these topics can significantly enhance overall preparedness.

5. Stay Updated on Regulatory Changes

Given the dynamic nature of the financial industry, it is essential to stay informed about recent regulatory updates and trends. Incorporating this knowledge into exam preparation can provide a competitive edge.

6. Create a Study Schedule

Developing a structured study schedule ensures consistent progress and helps candidates allocate sufficient time to cover all exam topics. Breaking down the content into manageable sections and setting realistic goals can make the preparation process more effective and less overwhelming.

Benefits of Earning the Series 99 Certification

Obtaining the Series 99 certification offers several advantages for financial professionals:

• Career Advancement: The certification demonstrates expertise in operational functions, making candidates more competitive for roles in financial control, compliance, and operations management.

• Regulatory Compliance: Certified professionals possess the knowledge required to maintain compliance with FINRA regulations, reducing the risk of penalties for their firms.

• Professional Credibility: Holding the Series 99 designation enhances professional credibility and establishes candidates as trusted experts in their field.

• Broader Opportunities: The certification qualifies individuals for a wide range of operational roles within broker-dealer firms, expanding their career options.

Conclusion

The Series 99 exam is a vital certification for professionals pursuing a career in the operational side of the financial services industry. By assessing knowledge of broker-dealer operations, regulatory compliance, and ethical practices, the exam ensures that certified individuals can perform critical functions with integrity and proficiency. As the financial industry continues to evolve, the Series 99 certification remains a valuable credential for those looking to excel in operational roles.

Candidates preparing for the Series 99 exam should leverage the detailed content outline, invest in high-quality study materials, and adopt effective preparation strategies to maximize their chances of success. By obtaining this certification, professionals can enhance their career prospects, contribute to their firms’ operational excellence, and uphold the standards of the securities industry.