Series 14 Syllabus — Blueprint & Learning Objectives
FINRA Series 14 syllabus mapped to the official job functions with clear learning objectives and quick links to targeted practice.
This syllabus is based on FINRA’s official Series 14 Content Outline (nine major job functions). Use it as a checklist: cover every objective, then drill questions until you can pick the safest compliant next step quickly.
Differentiate the roles of the SEC and self-regulatory organizations (SROs) in the U.S. securities regulatory framework.
Describe FINRA’s role in member firm regulation and how FINRA rules interact with federal securities laws (high level).
Explain, at a high level, what the NYSE and MSRB regulate and the types of rules that commonly apply to member activity.
Identify which of the major federal securities statutes (e.g., ’33 Act, ’34 Act, Advisers Act, Investment Company Act) generally governs a given compliance scenario (high level).
Disciplinary processes and arbitration awareness
Explain the purpose of SRO disciplinary processes and why firms maintain procedures to identify, escalate, and remediate violations (high level).
Describe arbitration concepts at a high level and identify what a compliance officer must preserve and document when a matter escalates to arbitration.
Recognize common enforcement outcomes (fines, suspensions, bars) and why internal documentation and remediation plans matter.
Apply a compliance mindset to detect trading activity that may violate standards of commercial honor and just and equitable principles of trade (high level).
Identify fair pricing and commission themes that drive surveillance and exception review (high level).
Recognize IPO allocation restriction themes and why firms implement new issue controls and eligibility checks (high level).
Identify front running and trading-ahead patterns (customer orders, block transactions, research) and the supervisory controls used to prevent them (high level).
Explain best execution concepts at a high level and how execution quality reviews are incorporated into compliance monitoring.
Trading practices, order handling, and trade reporting (high level)
Recognize confirmation and reporting concepts that support an accurate audit trail for customer transactions (high level).
Identify short sale delivery requirement themes and how fails or delivery exceptions can trigger compliance review (high level).
Describe trade reporting concepts for different products and venues (e.g., TRACE for fixed income) and the importance of timing/accuracy (high level).
Explain what “clearly erroneous” transactions are at a high level and when escalation to the applicable process is required.
Differentiate common order types and modifiers (including exchange-specific concepts) and identify why accurate order instructions matter for surveillance and customer protection.
Explain what constitutes a block transaction at a high level and why block-related handling can have specific control expectations.
Recognize cross transaction themes and why crossing activity often has heightened scrutiny and documentation expectations (high level).
SEC market rules that drive compliance monitoring (high level)
Recognize manipulative and deceptive device concepts (e.g., Exchange Act Rule 10b-5) and how surveillance looks for related red flags.
Explain issuer repurchase rule themes (e.g., Rule 10b-18) at a high level and why compliance monitors for safe-harbor conditions where applicable.
Identify quotation initiation/resumption themes (e.g., Rule 15c2-11) and why required information and process controls matter for OTC quoting (high level).
Recognize the purpose of Regulation M and how distribution-related restrictions can affect trading and market activity (high level).
Recognize the purpose of Regulation NMS at a high level and how market structure rules influence order routing and trade-through concerns.
Recognize the purpose of Regulation SHO at a high level and how short sale marking/locate/close-out themes affect compliance monitoring.
Identify Section 16(b) short-swing profit concept at a high level and why related transactions can create compliance and reporting sensitivity.
Surveillance program design and exception handling
Design surveillance procedures that combine internal order/trade data with external market data to detect suspicious patterns (high level).
Explain how OTC reporting facility concepts support audit trails and surveillance for OTC equity activity (high level).
Recognize floor-trading rule themes at a high level and how they influence market conduct monitoring for certain venues.
Identify when penny stock-related transactions and exemptions require heightened supervision and documentation (high level).
Recognize that Treasury auction market rules can create unique compliance monitoring needs for government securities auction activity (high level).
Describe how firms use manual and automated systems to capture orders, executions, and market data for surveillance purposes (high level).
Explain how internal and external data sources are assembled to support exception-based reviews (high level).
Describe the lifecycle of a surveillance alert from detection → investigation → remediation → documentation (high level).
Identify what information is typically retrieved to respond to a regulatory inquiry and why completeness and accuracy matter.
Recordkeeping controls for customer activity
Recognize key books-and-records obligations for confirmations and transaction records (high level).
Apply record retention concepts for customer account information and updates (high level).
Identify recordkeeping expectations for written customer complaints and related supervisory handling (high level).
Explain why firms retain authorizations for negotiable instruments drawn from a customer account and what control failures look like (high level).
Describe supervision and documentation expectations for changes in account name or designation (high level).
Regulatory reporting and program trading awareness
Explain short-interest reporting at a high level and why reporting accuracy and cutoffs are monitored.
Recognize beneficial ownership and insider reporting concepts (Schedules 13D/13G, Section 16 filings) and the types of triggers that require escalation (high level).
Recognize program trading and extraordinary volatility halt themes at a high level and why they matter for firm procedures and compliance monitoring.
Describe closing auction concepts at a high level and why related activity can be sensitive for surveillance.
F4 — Credit Regulation and Capital Requirements (6%)
Net capital and customer protection basics (high level)
Explain the purpose of the SEC net capital rule and how firms monitor compliance with minimum capital requirements (high level).
Describe customer protection rule themes (reserves and custody) at a high level and why safeguarding customer assets is a core compliance obligation.
Identify regulatory notification concepts (e.g., early warning and 17a-11 style notifications) and when firms must escalate potential capital issues (high level).
Recognize how certain business events or trades can affect net capital at a high level and why compliance monitors for emerging risks.
Margin and credit regulation
Apply a high-level understanding of margin requirements and why firms maintain daily margin records and exception reports.
Explain Regulation T concepts at a high level and how initial margin/credit extension requirements affect account supervision.
Recognize day trading supervision themes at a high level and why firms implement heightened margin and risk controls for active trading.
Describe prime brokerage arrangements at a high level and identify key compliance risks (allocation of responsibilities, disclosures, and controls).
Describe joint back-office arrangement concepts at a high level and why supervisory responsibility and documentation remain critical even when functions are shared or outsourced.
Recognize Section 11(d) credit restriction themes at a high level and why certain credit arrangements are restricted for new issues.
Underwriting process, research, and information barriers (high level)
Describe the underwriting process at a high level and identify common compliance control points (disclosures, allocations, restricted periods).
Recognize the purpose of securities offering prohibitions and registration concepts under the Securities Act and why offering communications are controlled (high level).
Differentiate research communications from offering communications at a high level and identify why distribution participation status affects what can be published.
Recognize prospectus delivery concepts at a high level and why delivery/availability controls matter in distributions.
Recognize Regulation M themes at a high level and how distribution-related trading restrictions drive compliance monitoring.
Identify MNPI and insider trading prevention themes at a high level and why firms maintain information barriers and restricted lists.
Recognize blue sky (state securities law) concepts at a high level and why offering distribution often requires state-by-state consideration.
Fixed price offerings
Define a fixed price offering at a high level and identify why pricing and sales practices are tightly controlled.
Recognize the compliance risks of discounting, concessions, and improper pricing deviations in fixed price offerings (high level).
Identify the types of supervisory evidence and approvals firms retain for fixed price offering sales (high level).
Tender offers (high level)
Recognize issuer and third-party tender offer rule themes at a high level and why timing and disclosures are key compliance drivers.
Identify MNPI risks in the tender offer context and recognize why trading on nonpublic tender offer information is prohibited (high level).
Describe supervisor escalation expectations when potential tender offer misuse is detected (high level).
Control and restricted securities; resale exemptions (high level)
Differentiate control securities from restricted securities at a high level and identify why resale restrictions apply.
Recognize Rule 144 concepts at a high level (holding period, volume/manner limitations, current information) and when firms apply special handling controls.
Recognize Rule 145 concept at a high level and why certain reorganizations are treated as distributions for resale analysis.
Identify the concept of exempt transactions under Section 4 at a high level and why exemptions still require compliant process and documentation.
Private placements and limited offerings (high level)
Recognize FINRA private placement filing and notice concepts at a high level and why firms track submissions and timing (e.g., Rules 5122/5123).
Differentiate Rule 144A resales, Regulation S offshore offers/sales, and Regulation D private offering concepts at a high level.
Identify the compliance risks of general solicitation, investor qualification, and offering documentation in private placements (high level).
Recognize Regulation A limited offering concepts at a high level and why offering type affects disclosure and distribution obligations.
Identify the types of supervisory evidence (due diligence, approvals, disclosures, and record retention) maintained for private offerings (high level).
Describe the purpose of account-opening procedures and how they support suitability/best-interest decisions (high level).
Identify recordkeeping expectations for customer account information and updates, including account designation and authority changes (high level).
Recognize supervision requirements for discretionary accounts at a high level and identify the documentation needed for discretion.
Recognize supervision and reporting themes for employee accounts and accounts maintained at other broker-dealers or financial institutions (high level).
Explain account transfer (ACATS) concepts at a high level and why transfer documentation and timing controls matter.
Recognize the controls used to prevent misappropriation, forgery, and unauthorized funds movement (high level).
Suitability/Reg BI mindset and sales practice red flags
Apply suitability and best-interest concepts at a high level to detect recommendations that do not align with the customer profile.
Recognize misrepresentation, omission, and misleading disclosure risks and identify escalation expectations (high level).
Identify unauthorized trading and failure-to-follow-instructions patterns and describe the compliance steps for investigation and remediation (high level).
Recognize excessive trading/turnover and concentration red flags and describe how exception reports drive supervisory follow-up (high level).
Recognize product and conflict intersections (research, investment banking, trading) that can distort recommendations and must be supervised (high level).
AML, sanctions, and suspicious activity awareness
Explain the purpose of an AML program at a high level and how it integrates with onboarding and ongoing monitoring.
Recognize suspicious activity monitoring themes under the Bank Secrecy Act and identify when matters must be escalated internally (high level).
Recognize USA PATRIOT Act verification themes at a high level and why identity and beneficial ownership checks matter.
Explain OFAC screening concepts at a high level and the importance of blocking/rejecting prohibited transactions per policy.
Recognize penny stock supervision themes at a high level and why additional disclosures and controls are commonly required.
Customer complaints handling and reporting
Define what constitutes a customer complaint in a sales practice context and identify when it triggers documentation and response procedures.
Describe how complaint records are maintained and why retention supports examinations and remediation.
Recognize regulatory reporting concepts for complaints and related matters at a high level and identify compliance’s role in timely filings.
Recognize that options-related complaints can involve additional handling and supervision themes (high level).
Recognize MSRB investor protection and education themes at a high level and why they can influence procedures for municipal-related accounts.
Public communications: definitions, approvals, and supervision
Define communications with the public at a high level and differentiate common categories used for supervision and approval workflows.
Apply the core standard that communications must be fair and balanced and not misleading, promissory, or omit material risks (high level).
Recognize options communications and research report themes at a high level and why special controls and disclosures may apply.
Describe how principal review, record retention, and supervision controls are applied to advertising, seminars, media appearances, and written materials (high level).
Telemarketing and cold calling
Apply telemarketing rule concepts at a high level, including do-not-call process controls and time-of-day restrictions.
Recognize Telephone Consumer Protection Act (TCPA) themes at a high level and why consent and dialing practices can create compliance exposure.
Identify supervision and recordkeeping practices firms use for calling campaigns, scripts, and solicitation evidence (high level).