FINRA Series 28: 6 Sample Questions & Simulator
Series 28 sample questions, mock-exam practice, and simulator access for the FINRA Introducing Broker-Dealer FINOP route in Securities Prep on web, iOS, and Android.
Series 28 is the Introducing Broker-Dealer Financial and Operations Principal Qualification Examination. It is narrower than Series 27 because it focuses on firms that do not carry customer accounts or hold customer funds or securities. If you are searching for Series 28 sample questions, a practice test, mock exam, or simulator, this is the main Securities Prep page to start on web and continue on iOS or Android with the same account. This page includes 6 sample questions with detailed explanations so you can validate the introducing-firm FINOP style before opening the full simulator.
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What this Series 28 practice page gives you
- a direct route into the Securities Prep simulator for Series 28
- a compact sample set focused on introducing-firm FINOP decisions
- topic guidance for financial reporting, books and records, net capital, and customer-protection exemption logic
- the same subscription across web and mobile
Series 28 exam snapshot
- Provider: FINRA
- Exam: Introducing Broker-Dealer Financial and Operations Principal Qualification Examination
- Current training reference: 95 scored questions in 120 minutes
- Registration context: FINOP route for introducing firms that do not carry customer assets
Topic weighting for Series 28 practice
| Blueprint area | Approx. weight |
|---|---|
| Function 1 — Financial reporting | 17% |
| Function 2 — Operations, regulations, and preservation of books and records | 31% |
| Function 3 — Net capital | 33% |
| Function 4 — Customer protection, funding, and cash management | 19% |
What Series 28 is really testing
Series 28 is a control-and-classification exam. The candidate has to know what belongs to the introducing firm, what belongs to the clearing firm, how records and filings stay defensible, and how a smaller firm’s capital and cash-management decisions affect regulatory compliance.
How to use the Series 28 simulator efficiently
- Start with net capital and books-and-records drills because those are the cleanest scoring areas.
- Review every miss until you can explain whether the duty belongs to the introducing firm, the clearing firm, or both.
- Move into mixed sets once you can switch between FOCUS logic, customer-protection exemption, and operational exceptions without hesitation.
- Finish with timed runs so the 120-minute pace feels controlled.
Free preview vs premium
- Free preview: the sample set on this page so you can validate the FINOP style and explanation depth.
- Premium: full Series 28 simulator access on web and mobile with mixed practice, timed mock exams, detailed explanations, and progress tracking.
6 Series 28 sample questions with detailed explanations
Question 1
Topic: Function 3 - Net Capital
An introducing broker-dealer records a large unsecured receivable from an affiliate for shared-office expenses. The receivable has been outstanding for months and management says it is “collectible eventually.”
How should the FINOP treat the item first when reviewing net capital?
- A. As an allowable asset because the affiliate relationship makes collection more likely
- B. As a likely non-allowable asset requiring a conservative net-capital treatment
- C. As customer protection collateral because it relates to business operations
- D. As a subordinated asset that improves net capital
Best answer: B
Explanation: Series 28 expects a conservative FINOP lens. A stale unsecured affiliate receivable is not the kind of liquid asset the firm can rely on for regulatory capital strength, so the defensible treatment is to classify it conservatively rather than count it as a clean capital resource.
Question 2
Topic: Function 4 - Customer Protection, Funding and Cash Management
A customer mails a check to the introducing broker-dealer by mistake. The introducing firm does not carry accounts and claims the appropriate customer-protection exemption.
What is the best response?
- A. Deposit the check into the firm’s general account until the next clearing batch
- B. Promptly forward the check under the firm’s established transmission controls and document the handling
- C. Return the check only if the amount exceeds the firm’s internal materiality threshold
- D. Keep the check uncashed in a branch safe until the customer’s next trade
Best answer: B
Explanation: An introducing firm that relies on the customer-protection exemption must still handle mistaken receipt of customer assets carefully. The correct response is prompt transmission and documentation, not temporary use, storage, or delayed processing.
Question 3
Topic: Function 1 - Financial Reporting
A FINOP discovers after filing that several expense items were mapped to the wrong reporting line in the firm’s regulatory report, making one line item materially misleading even though total net worth did not change.
What is the best first action?
- A. Wait until the next regular filing because net worth was unaffected
- B. Evaluate amendment and notification obligations immediately rather than assuming the filing can stand
- C. Reclassify the items internally and keep the correction in a branch notebook
- D. Ignore the issue because line-item accuracy is an audit matter only
Best answer: B
Explanation: Series 28 tests filing discipline, not just arithmetic. A materially misleading line item can still matter even if total net worth is unchanged. The FINOP should assess whether the filing needs to be amended and whether any related notifications or documentation updates are required.
Question 4
Topic: Function 2 - Operations, General Securities Industry Regulations, and Preservation of Books and Records
The firm’s operations team stores key reconciliation files and exception reports only on one employee’s laptop. No tested backup location or retrieval process exists.
What is the main FINOP concern?
- A. The firm may not be able to preserve and retrieve required records reliably
- B. The firm is automatically out of net capital compliance
- C. The clearing firm becomes responsible for the records
- D. The firm must stop opening all new accounts immediately
Best answer: A
Explanation: This is a books-and-records and business-continuity control failure. Series 28 often turns on whether the firm can preserve, access, and produce required records, not just whether the records exist somewhere informally.
Question 5
Topic: Function 3 - Net Capital
Management proposes funding the firm through a short-term bank line that the lender can call on demand. The CFO says the line should be treated the same as subordinated capital because both provide cash.
Which statement is most accurate?
- A. The bank line and subordinated capital are interchangeable for regulatory purposes
- B. Only if the line is unused can it support net capital
- C. The firm should distinguish callable outside borrowing from capital arrangements specifically structured for regulatory support
- D. The line automatically improves customer-protection status because it increases liquidity
Best answer: C
Explanation: Series 28 expects candidates to distinguish funding sources that truly support regulatory capital from ordinary liabilities that can be withdrawn or accelerated. Cash alone does not make two funding arrangements equivalent for FINOP purposes.
Question 6
Topic: Function 2 - Operations, General Securities Industry Regulations, and Preservation of Books and Records
An introducing broker-dealer relies on its clearing agreement for many operational functions, but branch managers assume that this means the clearing firm is responsible for every operational exception and recordkeeping defect.
What is the best FINOP correction?
- A. Confirm that the introducing firm still needs to monitor, document, and escalate duties assigned to it under the clearing relationship
- B. Transfer all supervision to the clearing firm because it performs settlement
- C. Remove references to the introducing firm from the procedures to avoid duplication
- D. Limit the firm’s review to customer complaints only
Best answer: A
Explanation: Carrying firms perform many functions, but the introducing firm does not disappear from the control framework. Series 28 often tests whether the candidate can identify the introducing firm’s remaining monitoring, documentation, and escalation obligations even when a clearing firm performs the operational work.