Series 14 — Compliance Official Qualification Examination Quick Reference

Last revised: June 29, 2026

Compact FINRA Series 14 quick reference for supervision, sales practice, trading, AML, communications, records, and compliance controls.

Exam Identity and Study Focus

Item	Reference
Official vendor/provider	FINRA
Official exam title	Series 14 — Compliance Official Qualification Examination
Official exam code	Series 14
Page purpose	Independent Quick Reference for candidates preparing for the real exam

The Series 14 is a compliance-official exam. Expect scenario questions that test whether you can identify the governing rule set, the responsible party, the required supervisory response, the records needed, and the escalation or reporting obligation.

Use this page to review decision points quickly. Confirm current rule text and your firm’s procedures when applying these concepts in practice.

Scenario Triage Framework

For most Series 14 questions, classify the fact pattern before trying to recall details.

    flowchart TD
	    A[Fact pattern] --> B{Who is involved?}
	    B --> C[Customer / retail investor]
	    B --> D[Associated person]
	    B --> E[Issuer / syndicate / affiliate]
	    B --> F[Trading desk / market center]
	    B --> G[Operations / books and records]
	
	    C --> H{Recommendation?}
	    H -->|Yes| I[Reg BI, suitability, disclosure, conflicts, documentation]
	    H -->|No| J[Account rules, communications, order handling, antifraud]
	
	    D --> K{Personal activity?}
	    K -->|Outside business| L[OBA review and approval process]
	    K -->|Private securities transaction| M[PST notice, compensation, firm approval/supervision]
	    K -->|Personal account| N[Employee account controls, preclearance, review]
	
	    E --> O[Underwriting, conflicts, IPO rules, Reg M, research, MNPI barriers]
	    F --> P[Best execution, trade reporting, Reg NMS, Reg SHO, manipulation controls]
	    G --> Q[SEA books/records, net capital, customer protection, confirmations, statements]

Regulatory Map

Source	Primary role	High-yield Series 14 focus
FINRA	SRO for broker-dealers and associated persons	Supervision, sales practice, communications, registration, reporting, trade reporting, disciplinary process
SEC	Federal securities laws and broker-dealer regulation	Securities Act, Exchange Act, Reg BI, books/records, financial responsibility, Reg M, Reg SHO, Reg NMS, Reg S-P
MSRB	Municipal securities dealer and municipal advisor rules	Fair dealing, municipal supervision, political contributions, pricing, suitability, disclosures, EMMA/RTRS concepts
Federal Reserve / Reg T	Credit extension in securities accounts	Initial margin concepts, cash vs margin account issues, extensions of credit
FinCEN / BSA / OFAC	Financial crime and sanctions controls	AML program, CIP, CDD, suspicious activity, sanctions screening
SIPC	Customer protection if broker-dealer fails	Missing securities/cash coverage concept; not protection from market loss
Exchanges and clearing agencies	Market rules, listing/trading standards, clearance and settlement	Trading controls, short sale and locate issues, operational risk
State regulators	State securities law overlay	Blue sky concepts, state action risk, dual federal/state concerns

Compliance Official Role: What the Exam Tests

Area	Compliance official mindset
Policies	Are written policies tailored to the firm’s business, products, customers, and risks?
Supervision	Who is the designated supervisor, and what evidence shows review occurred?
Testing	Are procedures tested independently enough to detect failures?
Escalation	What must be escalated to legal, AML, senior management, regulators, or the board?
Conflicts	Has the conflict been eliminated, mitigated, disclosed, or supervised?
Documentation	Can the firm prove what it knew, reviewed, approved, rejected, and reported?
Remediation	Were affected customers identified, corrected, and monitored for recurrence?
Training	Were associated persons trained on the relevant rule, product, and red flags?

Supervision and Control Rules

Topic	Core concept	Exam trap
Written Supervisory Procedures	WSPs must describe how the firm supervises its business, who performs reviews, and how evidence is retained	Generic WSPs are not enough if the firm’s actual business is more complex
Designated supervisors	Supervisory responsibility must be assigned to qualified principals or supervisors	Compliance staff can monitor, but business supervisors cannot outsource accountability entirely
Branch and OSJ supervision	Offices must be classified and inspected based on business activity and risk	A small or remote office can still be high risk
Correspondence review	Firm must supervise incoming and outgoing correspondence based on risk and procedure	“Electronic” does not avoid supervision
Internal inspections	Reviews should test whether procedures are followed, not merely whether procedures exist	Self-review conflicts require controls
Supervisory control system	Independent review/testing of supervisory systems and reporting to senior management	Same person who created a process should not be the only tester of its effectiveness
CEO certification	Certification process focuses on maintaining and reviewing policies and supervisory procedures	It is not a personal guarantee that no violation occurred
Taping rule	Applies to firms with concentrations of associated persons from disciplined firms, subject to FINRA rule conditions	Do not confuse with ordinary call recording policies
Heightened supervision	Used for higher-risk associated persons, branches, products, or patterns	Must be specific, documented, and actually performed

Customer and Account Lifecycle

Stage	Required compliance focus	Red flags
Prospecting	Communications, fair and balanced presentation, no promissory statements	Guarantees, cherry-picked performance, exaggerated credentials
Account opening	CIP, customer profile, risk tolerance, investment objectives, capacity, authority	Incomplete beneficial owner/control person information, reluctance to provide ID
Account approval	Product eligibility, options/margin/discretionary approvals if applicable	Trading begins before required approvals
Recommendations	Reg BI, care, conflict, disclosure, reasonable basis	Recommendation inconsistent with customer profile
Trading	Best execution, order handling, trade reporting, confirmations	Pattern of late, cancelled, or corrected trades
Ongoing review	Statements, complaints, changes in customer status, unusual activity	Elder exploitation, sudden wire activity, new third-party instructions
Termination/transfer	ACATS/transfer controls, restricted accounts, complaint preservation	Blocking transfers without valid basis

Regulation Best Interest and Suitability

Concept	Key point	Common trap
Reg BI applies to	Broker-dealer recommendations to retail customers	It is triggered by a recommendation, not every interaction
Disclosure obligation	Material facts about scope, fees, costs, conflicts, and capacity must be disclosed	Disclosure alone does not cure all conflicts
Care obligation	Must understand risks, rewards, costs, and alternatives reasonably available	Lowest-cost product is not always required, but cost must be considered
Conflict obligation	Conflicts must be identified and addressed through mitigation, elimination, or disclosure	Sales contests and compensation grids create exam-relevant conflicts
Compliance obligation	Firm must have policies reasonably designed to achieve Reg BI compliance	A rep-level explanation is insufficient without firm procedures
FINRA suitability	Still relevant for non-retail customers, institutional accounts, and rule overlays	Do not assume Reg BI eliminated all suitability analysis
Institutional suitability	Customer sophistication and independent evaluation matter	Institutional status does not excuse misleading recommendations
Unsolicited order	Customer initiates without recommendation	Unsolicited does not excuse AML, manipulation, or account review duties

Account Authority and Discretion

Situation	Treatment
Time and price discretion only	Generally treated differently from full investment discretion when limited to execution timing/price
Full discretionary authority	Requires written customer authorization and firm/principal acceptance under applicable procedures
Third-party trading authority	Verify legal authority, written authorization, and account records
Power of attorney	Review scope, validity, and potential elder exploitation or undue influence
Margin authority	Requires margin agreement and approval; margin risk disclosure matters
Options authority	Requires specific approval based on options experience, objectives, financial status, and risk tolerance

Communications With the Public

Category	Typical definition	Supervision focus
Retail communication	Communication to more than a limited number of retail investors within the rule period	Principal approval, fair/balanced content, filing when required
Correspondence	Written or electronic communication to a limited number of retail investors	Risk-based review and retention
Institutional communication	Communication only to institutional investors	Procedures to prevent improper retail distribution
Public appearance	Seminars, media, webinars, unscripted appearances	Training, supervision, recordkeeping when required
Social media static content	Profile pages, posts that remain posted and are controlled by the firm/person	Treat like retail communication if retail audience
Social media interactive content	Real-time or interactive posts	Supervise under interactive-use procedures; retain records
Testimonials/endorsements	Statements from customers or third parties	Required disclosures, conflicts, compensation, and no misleading implications

Communication Content Checklist

Requirement	What to look for
Fair and balanced	Benefits and risks presented together
No false or misleading statements	No omissions that make statements misleading
Reasonable basis	Claims supported by data or reasonable assumptions
Prominently disclosed risks	Especially for complex, illiquid, leveraged, speculative, or tax-sensitive products
No exaggerated predictions	Avoid guarantees, projections without basis, and promissory language
Proper product naming	Do not blur mutual funds, ETFs, annuities, bank products, crypto assets, or insured deposits
Performance standards	Include required context, time periods, assumptions, and limitations
Record retention	Retain final versions, approvals, and evidence of review

Associated Person Conduct

Topic	Rule logic	Exam distinction
Outside business activity	Activity outside the firm, whether securities-related or not, must be disclosed and reviewed under firm procedures	OBA may become PST if securities transactions are involved
Private securities transaction	Securities transaction outside regular employment; written notice required; compensation changes treatment	If approved and compensated, firm must supervise as if on its books
Borrowing/lending with customers	Generally prohibited unless permitted under rule conditions and firm procedures	Personal relationships do not automatically make it acceptable
Gifts and gratuities	Limits and policies apply to business-related gifts	Entertainment is analyzed differently if host is present and business purpose is documented
Noncash compensation	Particularly relevant for investment company securities, variable products, and public offerings	Sales contests tied to specific products are high risk
Political contributions	Pay-to-play restrictions can affect municipal and advisory business	Contributions by covered persons may trigger business restrictions
Personal trading	Employee accounts, restricted lists, watch lists, preclearance, and duplicate confirmations	MNPI and front-running issues are central
Heightened supervision	Tailored monitoring for higher-risk individuals	A memo saying “heightened supervision” is not enough without actual steps

OBA vs PST Quick Distinction

Question	OBA	PST
Is the activity outside the firm?	Yes	Yes
Does it involve a securities transaction?	Not necessarily	Yes
Is compensation relevant?	Relevant for risk review	Determines whether firm must record/supervise as firm business if approved
Is prior written notice expected?	Yes, under firm procedures/rule requirements	Yes
Example	Paid tax preparation business	Selling private placement interests away from the firm

AML, Sanctions, and Financial Crime

Component	Compliance expectation	Exam red flags
AML program	Written policies, AML officer, training, independent testing, risk-based controls	No testing, outdated risk assessment, unclear escalation
Customer Identification Program	Collect and verify identifying information before or within permitted account-opening process	Customer avoids ID, uses nominee, inconsistent documents
Customer Due Diligence	Understand customer nature, purpose, beneficial ownership/control where applicable	Shell entities, complex ownership, foreign high-risk jurisdictions
Suspicious activity monitoring	Detect, investigate, escalate, and file when required	Structuring, rapid in/out wires, penny-stock liquidation, third-party wires
OFAC/sanctions	Screen customers, counterparties, and transactions against sanctions requirements	Potential hit ignored or cleared without documentation
Currency activity	Cash transactions require special controls and reporting analysis	Multiple cash deposits just below reporting levels
Elder exploitation	Unusual withdrawals, new caregivers, sudden beneficiaries, confusion	May require temporary holds, trusted contact, and escalation under firm procedures
Cyber-enabled fraud	Account takeover, email compromise, altered wire instructions	Verify through trusted channels; preserve evidence

Complaints, Reporting, and Escalation

Event	Compliance response
Written customer complaint	Log, investigate, supervise, retain, and report when required
Oral complaint	May not trigger the same formal definition, but should still be reviewed for risk
Regulatory inquiry	Preserve documents, coordinate response, meet deadlines, avoid incomplete responses
FINRA information request	Rule-based obligation to provide information and testimony when properly requested
U4 disclosure event	Determine whether amendment is required; do not delay based on reputational concerns
U5 termination disclosure	Must be accurate, complete, and timely under applicable rules
Internal investigation	Preserve privilege where applicable, document findings, remediate control failures
Statutory disqualification issue	Escalate immediately; affects association and membership considerations
Customer restitution	Correct affected accounts and evaluate whether systemic reporting is required

Trading and Market Conduct

Area	Core rule concept	Common exam trap
Best execution	Use reasonable diligence to obtain the most favorable terms reasonably available	Payment for order flow does not eliminate best-execution duty
Order handling	Follow order instructions, priority, display, routing, and cancellation procedures	“Not held” orders still require supervision
Trading ahead / Manning	Firm must not trade for its own account ahead of customer limit orders in a prohibited way	Principal capacity does not avoid the rule
Front-running	Trading based on advance knowledge of customer or research activity is prohibited	Applies even if trade is profitable for customer later
Market manipulation	Wash trades, matched orders, marking the close, layering/spoofing, rumor-based trading	Intent and pattern evidence matter
Reg NMS	Order protection, access, sub-penny, and market data concepts	Best execution is broader than trade-through compliance
Reg SHO	Locate, marking long/short/short exempt, close-out rules	“Easy-to-borrow” lists require controls
Trade reporting	Equity, corporate bond, agency, and municipal transactions have reporting systems and timing rules	Reporting and settlement are different concepts
TRACE	Corporate and agency debt transaction reporting	Do not confuse with MSRB RTRS
RTRS / EMMA	Municipal trade reporting and municipal disclosure access concepts	Municipal rules are MSRB-based, not FINRA-only
Market access	Pre-trade risk controls for direct or sponsored market access	Cannot rely only on post-trade surveillance
Short tender / Reg M	Distribution-period restrictions prevent manipulative activity	Stabilization and syndicate covering have specific conditions

Trade Capacity and Compensation

Capacity	Customer disclosure issue	Compensation form
Agency	Firm acts as agent for customer	Commission or commission equivalent
Principal	Firm sells from or buys into its own account	Markup or markdown
Riskless principal	Firm offsets customer order with contemporaneous offsetting trade	Treated with special confirmation and markup disclosure considerations
Underwriter	Firm participates in distribution	Underwriting spread, selling concession, syndicate compensation
Market maker	Firm stands ready to buy/sell	Spread; conflicts and quote obligations matter

Markup / Markdown Reference

Markup and markdown analysis generally compares the customer price to the prevailing market price, not the firm’s original cost if that cost is stale or not representative.

\[ \text{Markup \%} = \frac{\text{Customer price} - \text{Prevailing market price}}{\text{Prevailing market price}} \times 100 \]\[ \text{Markdown \%} = \frac{\text{Prevailing market price} - \text{Customer price}}{\text{Prevailing market price}} \times 100 \]

High-yield trap: a “5% policy” is a guideline, not a safe harbor. The fairness of compensation depends on facts such as product type, price, service, availability, risk, and execution.

Margin and Credit Concepts

Formula / concept	Quick reference
Long account equity	Long market value minus debit balance
Short account equity	Credit balance minus short market value
Reg T	Federal initial margin framework for securities credit
Maintenance margin	Ongoing equity requirement; FINRA/exchange/house rules may apply
SMA	Special Memorandum Account; represents buying power, not cash
Restricted account	Equity below initial requirement but above maintenance
Margin call	Demand for additional equity or reduction of debit/short exposure
Hypothecation	Firm pledging customer margin securities subject to limits and agreements
Portfolio margin	Risk-based margining for approved accounts/products

\[ \text{Long Equity} = \text{Long Market Value} - \text{Debit Balance} \]\[ \text{Short Equity} = \text{Credit Balance} - \text{Short Market Value} \]

Exam trap: margin approval is not only a credit decision. It also raises suitability, disclosure, risk tolerance, concentration, and liquidation authority issues.

Investment Company, Variable Product, and Retirement Account Controls

Product / account	Compliance focus	Common trap
Mutual funds	Breakpoints, letters of intent, rights of accumulation, share class suitability	Recommending higher-cost share class without rationale
ETFs	Market price vs NAV, intraday trading, leverage/inverse risks	Treating all ETFs like plain index funds
Variable annuities	Surrender charges, tax deferral, riders, subaccounts, replacement analysis	Ignoring existing contract benefits and surrender period
529 plans	State tax benefits, fees, investment objective, beneficiary needs	Recommending out-of-state plan without documenting rationale
Retirement rollovers	Costs, services, investment options, conflicts, customer profile	Rollover recommendation requires Reg BI care analysis
Complex products	Options, structured notes, leveraged/inverse funds, private REITs	Extra training, approval, disclosures, and surveillance needed
Cash sweep	Bank vs money market vs brokerage cash features	FDIC and SIPC protections are different

Mutual Fund Sales Charge Formula

\[ \text{Public Offering Price} = \frac{\text{NAV}}{1 - \text{Sales Charge \%}} \]\[ \text{Sales Charge \%} = \frac{\text{POP} - \text{NAV}}{\text{POP}} \times 100 \]

Options and Complex Products

Area	Compliance requirement
Account approval	Options account must be approved based on financial status, experience, objectives, and risk tolerance
Options agreement	Required under options account procedures
Disclosure	Options disclosure document and product-specific risk disclosures
Levels of approval	Strategy approval should match customer sophistication and risk capacity
Principal review	Transactions and accounts reviewed under options supervision procedures
Spreads/straddles	Require understanding of margin, assignment, exercise, and tax consequences
Naked options	High risk; require stronger approval and margin controls
Complex products generally	Product committee, training, due diligence, concentration monitoring, and exception reports

Research, Investment Banking, and MNPI

Topic	Rule logic	Red flags
Equity research	Controls over analyst independence, conflicts, disclosures, and investment banking influence	Banker edits recommendation or price target
Debt research	Similar conflict principles with debt-specific exemptions and institutional treatment	Institutional-only assumptions applied to retail distribution
Research disclosures	Firm ownership, market making, compensation, conflicts, ratings distribution where required	Missing or buried disclosures
Quiet periods	Restrictions can apply around offerings and research publication	Publishing to support a distribution
Information barriers	Prevent misuse of MNPI between banking, research, trading, and sales	Wall-crossing not documented
Restricted/watch lists	Control trading, research, and solicitation where firm has sensitive information	Traders unaware of restrictions
Insider trading	Trading while aware of MNPI or tipping others is prohibited	“Rumor” may still be MNPI depending on source and facts
Personal trading	Preclearance and surveillance protect against misuse of information	Employee trades before research release or client block order

New Issues, Underwriting, and Capital Markets

Area	Compliance focus
Securities Act registration	Registered offering requires prospectus and disclosure compliance
Exempt offerings	Exemption from registration does not eliminate antifraud, suitability, Reg BI, AML, or supervision duties
Private placements	Reasonable investigation, investor qualification, use of proceeds, compensation, conflicts
Regulation D	Private offering framework; accredited investor and general solicitation conditions matter
Rule 144A	Resales to qualified institutional buyers; institutional market focus
Restricted/control securities	Resale limits and legend/removal controls
FINRA corporate financing rules	Underwriting compensation, conflicts, filing/review when applicable
Conflicts of interest offerings	Additional disclosure, qualified independent underwriter concepts where required
IPO allocations	Restricted persons, spinning, quid pro quo, and allocation records
Reg M	Distribution-period anti-manipulation controls for issuers, selling shareholders, underwriters, and market participants
Stabilization	Permitted only under specific conditions and disclosure/record requirements
Syndicate records	Allocation, concessions, penalty bids, covering transactions, confirmations

Municipal Securities Quick Reference

MSRB area	Core point	Exam trap
G-17 fair dealing	Dealer must deal fairly and not mislead	Applies to all municipal securities activities
G-19 suitability	Suitability obligations for municipal recommendations	Institutional analysis still matters
G-20 gifts/gratuities	Business-related gift restrictions and noncash compensation controls	Municipal rules are separate from FINRA rules
G-27 supervision	Municipal securities supervisory system and WSPs	Municipal principal responsibilities matter
G-30 prices/commissions	Fair and reasonable prices and compensation	Markup fairness applies to muni context
G-32 disclosures	Primary offering disclosure delivery concepts	Official statement access and timing are tested conceptually
G-37 political contributions	Pay-to-play restrictions for municipal securities business	Small contribution exceptions are not a broad safe harbor
G-42 municipal advisors	Duties when acting as municipal advisor	Underwriter and municipal advisor roles are different
EMMA	Public access to municipal disclosures and market information	EMMA is not the trade reporting system itself
RTRS	Municipal transaction reporting system	Do not confuse with TRACE

Municipal Dealer vs Municipal Advisor

Role	Duty profile
Underwriter / dealer	Fair dealing, disclosure of role and conflicts, no misleading statements
Municipal advisor	Advisor duty framework, including obligations to municipal entity clients
Placement agent	Analyze whether acting as dealer, underwriter, advisor, or solicitor
Associated person	Registration, qualification, supervision, and political contribution controls may apply

High-yield trap: a firm cannot avoid municipal advisor analysis just by labeling itself “underwriter” if its conduct crosses into advice outside the underwriting role.

Books, Records, and Customer Protection

Area	Compliance focus
SEA books and records	Create and preserve required records of accounts, orders, trades, communications, approvals, complaints, and financial data
Electronic records	Must be preserved, accessible, and protected from improper alteration/destruction
Order tickets	Terms, time, capacity, account, representative, and execution information
Confirmations	Capacity, price, compensation, settlement, and required disclosures
Account statements	Accurate positions, money balances, activity, and disclosures
Customer protection	Possession/control of fully paid and excess margin securities; reserve computation concepts
Net capital	Minimum liquid capital framework; nonallowable assets and haircuts matter
FOCUS and financial reporting	Broker-dealer financial reporting and supplemental reporting controls
SIPC	Protects eligible customer property if broker-dealer fails; does not insure against market loss
Business continuity	Written plan, emergency contacts, data backup, alternate communications

Net Capital Concept

\[ \text{Net Capital} = \text{Net Worth} + \text{Allowable Adjustments} - \text{Nonallowable Assets} - \text{Haircuts} \]

Exam trap: net capital is a liquidity-based regulatory measure, not the same as GAAP net income or ordinary balance-sheet equity.

Registration, Licensing, and Continuing Education

Topic	Compliance review point
Registration category	Associated person must hold registrations matching actual functions
Principal registration	Supervisory approval requires appropriately registered principal where rules require it
Form U4	Accurate disclosures and timely amendments
Form U5	Accurate termination reason and reportable events
Fingerprinting	Required for covered associated persons
Continuing education	Regulatory Element and Firm Element processes
Statutory disqualification	Requires escalation and may limit association
Permissive registrations	Must still be supervised and maintained under firm procedures
Branch registration	Office classification affects registration and inspection requirements

Product and Activity Selection Matrix

If the scenario involves…	Think first about…	Then check…
Retail recommendation	Reg BI	Costs, alternatives, conflicts, documentation
Institutional recommendation	Suitability	Sophistication and independent evaluation
Email/social post	Communications rules	Category, approval, retention, filing
Employee side business	OBA/PST	Notice, approval, compensation, supervision
Private placement	Due diligence	Investor status, conflicts, commissions, disclosures
IPO allocation	New issue rules	Restricted persons, spinning, records
Research report	Research conflict rules	Banking influence, disclosures, quiet periods
Muni bond sale	MSRB rules	Fair dealing, pricing, suitability, EMMA/RTRS
Short sale	Reg SHO	Locate, marking, close-out, aggregation unit
Large customer order	Best execution / front-running	Information barriers, order handling
Suspicious wires	AML/OFAC	Escalation, SAR analysis, account restrictions
Customer complaint	Complaint procedures	Reporting, retention, remediation
Financial shortfall	Net capital/customer protection	Notices, restrictions, books/records
Cyber intrusion	BCP/cyber/Reg S-P	Customer notice analysis, evidence preservation

High-Yield Distinctions

Distinction	Correct exam approach
Compliance vs supervision	Compliance designs, tests, advises, and monitors; supervisors approve and control business activity
Disclosure vs mitigation	Some conflicts require mitigation or elimination; disclosure alone may be insufficient
Recommendation vs education	Education can become a recommendation when tailored to induce action
Unsolicited vs solicited	Unsolicited orders still require truthful communications, AML controls, and proper order handling
Correspondence vs retail communication	Audience size and distribution determine category; forwarding can change treatment
OBA vs PST	Securities transaction outside the firm points to PST analysis
Agency vs principal	Compensation and confirmation disclosure differ
Markup vs commission	Principal trade uses markup/markdown; agency trade uses commission
TRACE vs RTRS	TRACE for corporate/agency debt; RTRS for municipal securities
EMMA vs official statement	EMMA is the access platform; official statement is the disclosure document
SIPC vs FDIC	SIPC is broker-dealer failure protection; FDIC is bank deposit insurance
Margin call vs Reg T extension	Different timing/authority concepts; do not merge them
Private placement exemption vs antifraud	Exemption from registration is not exemption from antifraud or suitability duties
Research vs sales material	Research has analyst-conflict rules; sales material still has communications standards
Underwriter vs municipal advisor	Role, duty, and conflict analysis differ

Exam-Day Rule Application Checklist

When a Series 14 question gives a messy fact pattern, answer in this order:

Identify the activity: recommendation, communication, trade, offering, employee conduct, account event, complaint, financial responsibility issue.
Identify the customer type: retail, institutional, municipal entity, issuer, affiliate, employee, senior/vulnerable investor.
Identify the governing regime: FINRA, SEC, MSRB, BSA/AML, margin, books/records, exchange rules.
Find the required control: approval, disclosure, supervision, testing, filing, reporting, restriction, escalation.
Check conflicts: compensation, proprietary product, banking relationship, affiliate, political contribution, MNPI.
Check records: approval evidence, correspondence, order ticket, complaint file, surveillance exception, investigation memo.
Choose the most protective compliant answer: stop, escalate, document, remediate, and report when required.

Practical Next Step

Use this Quick Reference to build short practice drills: take one scenario at a time, name the rule area, identify the responsible supervisor or compliance function, state the required record, and decide whether escalation or reporting is required. Then move into full-length Series 14 practice questions to test timing and application under exam conditions.

Scenario Guide

Regulatory Agencies