This syllabus is based on FINRA’s official Series 99 Content Outline (2 major job functions). Use it as a checklist: cover every objective, then drill questions until you can pick the safest compliant operational next step quickly.
What’s covered F1 — Knowledge Associated with the Securities Industry and Broker-Dealer Operations (70%) Practice this topic →
Account Opening and Maintenance Distinguish retail, institutional, and prime brokerage customer account types and their operational implications (high level). Identify common customer account registration types (e.g., individual and corporate/entity) and required documentation concepts (high level). Identify major individual and employer-sponsored retirement account types and core operational considerations (high level). Apply contribution limit and required minimum distribution (RMD) concepts when processing retirement account activity (high level). Differentiate transfers versus rollovers for retirement assets and recognize documentation/processing controls (high level). Identify entities authorized to open and transact business in an account and apply authorization controls (high level). Describe new account paperwork requirements and common internal approval workflows before account activation (high level). Explain standing settlement instructions (SSIs) and why SSI controls reduce fraud and operational risk (high level). Identify required customer information and documentation for onboarding, including CIP requirements (high level). Apply Know Your Customer (KYC) concepts to ensure account records are complete and current (high level). Identify securities products and product-specific disclosure requirements relevant to account opening and maintenance (high level). Explain escheatment concepts and when dormant/unclaimed property processes may apply (high level). Update customer account records accurately and timely to support compliant processing (high level). Recognize when to restrict account activity or freeze accounts and escalate per WSPs (high level). Handle accounts for associated persons of member firms consistent with firm policy and regulatory expectations (high level). Ensure required account-specific disclosures (e.g., ODD and prospectus delivery concepts) are delivered/available as required (high level). Cashiering and Account Transfers Describe common methods of moving funds and securities (e.g., wires, ACH, and journals) and when each is used (high level). Apply method-of-instruction controls (e.g., letters of authorization) and recognize approval/escalation requirements (high level). Explain transfer processes and documentation for different account types (high level). Explain the medallion signature guarantee program and when it is required (high level). Recognize Currency Transaction Report (CTR) triggers and escalation/filing workflows (high level). Explain reinvestment and sweep concepts and operational controls for customer cash (high level). Differentiate ACATS and non-ACATS account transfers and the operational steps for each (high level). Process partial transfers and understand residual and residual credit processing (high level). Identify characteristics of negotiable checks and key processing controls (high level). Describe check issuance controls and check blotter maintenance concepts (high level). Recognize and avoid prohibited cashiering activities such as check kiting or altering checks (high level). Avoid holding checks for extended periods and understand operational risk and escalation expectations (high level). Avoid interfering with or delaying account transfers and follow required timing and documentation controls (high level). Custody and Control of Securities Distinguish safekeeping versus segregation and explain custody/control concepts for customer securities (high level). Explain “street name” holdings versus directly held assets (including directly held mutual fund shares) (high level). Apply controls that secure customer assets and maintain accurate custody records (high level). Describe periodic physical counts of securities (“box counts”) and why they matter for possession and control (high level). Maintain a stock record and perform verification/comparison processes for securities positions (high level). Differentiate registered versus bearer certificates and how ownership transfer works (high level). Apply “good delivery” concepts and recognize the role of transfer agents and stock/bond powers (high level). Validate certificates and maintain a securities blotter to support audit trail and control (high level). Handle lost certificates using appropriate documentation, reporting, and escalation processes (high level). Explain DRS and DWAC concepts and how securities move through depository systems (high level). Identify which securities are depository eligible and the operational implications (high level). Explain stock legends and how legends affect negotiability and transferability (high level). Differentiate control securities versus restricted securities and related operational handling (high level). Apply holding period concepts for legend removal and distinguish reporting versus non-reporting company treatment (high level). Trade Reporting and Corrections Recognize trade reporting systems and the purpose of accurate, timely trade reporting (high level). Apply best execution concepts and recognize how capacity/quotation themes relate to trade reporting and communications (high level). Process trade corrections including “as/of” corrections and past settlement date corrections (high level). Explain the purpose and controlled use of error accounts for correcting operational mistakes (high level). Identify prohibited trading-related behaviors (front running, churning/excessive trading, manipulation) and why they matter operationally (high level). Recognize excessive markups and breakpoint sales as prohibited practices that can surface in operational processing and reporting (high level). Recognize improper sharing in profits and losses with customers and related escalation expectations (high level). Margin and Stock Loan/Securities Lending Compare margin requirements across different securities and account types (high level). Identify which accounts are permitted to trade on margin and required account agreements/disclosures (high level). Apply documentation and disclosure requirements for opening and maintaining margin accounts (high level). Apply federal and FINRA margin requirement concepts and recognize margin call processing expectations (high level). Explain stock loan/securities lending concepts at an operational level (high level). Apply short sale processing concepts including locate and borrow requirements (high level). Explain day trading and buying power concepts and common operational controls (high level). Settlement Explain trade comparison and affirmation concepts and why timely resolution reduces fails (high level). Distinguish settlement service providers and methods (clearing broker-dealer versus clearing facility; institutional arrangements) (high level). Explain repo/resale (repurchase agreement) trade and settlement concepts (high level). Explain continuous net settlement (CNS) at a high level and how it affects settlement obligations (high level). Recognize and resolve DK (“don’t know”) trades using appropriate notices and workflows (high level). Apply buy-in and closeout concepts for settlement fails and understand escalation/controls (high level). Confirm and manage aged fails using required documentation and communications (high level). Explain DVP settlement concept and cash/securities movement controls (high level). Account Statements and Confirmations Identify key information commonly included on customer account statements (positions, balances, activity, pricing) (high level). Distinguish customer account statements from performance reports and understand why each is used (high level). Identify key information included on trade confirmations and how confirmations support the audit trail (high level). Apply confirmation delivery requirements including electronic delivery concepts (high level). Recognize non-trade confirmations/third-party activity notices and when they are required (high level). Recognize prospectus delivery requirement concepts and operational delivery workflows (high level). Explain the purpose of tax forms used in brokerage accounts (high level). Apply cost basis concepts used for tax reporting (high level). Distinguish optional versus required tax withholding concepts and when withholding may apply (high level). Recognize prohibited activities related to pricing on statements/confirmations, including falsifying or withholding documents (high level). Ensure pricing and disclosure practices on statements/confirmations are accurate and compliant (high level). Regulatory Financial Requirements of Broker-Dealers Describe FINOP responsibilities at a high level and the role of finance/operations controls (high level). Explain the purpose and components of the FOCUS report (high level). Explain general ledger concepts and how operational events post to firm books (high level). Recognize net capital concepts and why broker-dealers must maintain minimum net capital (high level). Recognize reserve formula concepts and customer protection themes tied to customer funds/securities (high level). Recognize the role of carrying agreements in allocating operational responsibilities (high level). Books and Records Perform reconciliation concepts relevant to broker-dealer operations (cash, securities, bank/depository reconciliations) (high level). Recognize timelines for posting entries and why timely posting supports accurate books and controls (high level). Apply retention requirements for firm documents and recognize electronic storage requirements (high level). Recognize prohibited recordkeeping behaviors (falsifying records, improper maintenance/retention) and escalate per WSPs (high level). Recognize core books-and-records rule themes (FINRA 4510/4520; SEC 17a-3/17a-4) at a high level. Maintain an audit trail that links operational activity to books and records (high level). F2 — Professional Conduct and Ethical Considerations (30%) Practice this topic →
Relationships and Dealings with Customers, Vendors and Associated Persons of the Firm Apply professional communication methods and controls when interacting with customers, vendors, and firm personnel (high level). Handle nonpublic personal information appropriately in communications and operations workflows (high level). Recognize commission management/soft dollar concepts and why they create ethical/conflict considerations (high level). Recognize and avoid paying commissions to unregistered persons and escalate issues (high level). Apply vendor due diligence concepts for selecting service providers that support covered functions (high level). Apply communications-with-the-public mindset (fair, balanced, supervised) when messages relate to covered operations (high level). Customer Privacy Protect the confidentiality of customer information and limit access based on job needs (high level). Explain how information is exchanged and controlled between departments and with parties outside the firm (high level). Recognize required customer privacy disclosures and consent concepts (high level). Differentiate OBO versus NOBO and how each affects communications and shareholder materials processing (high level). Recognize privacy rule frameworks such as Regulation S-P and related safeguarding expectations (high level). Recognize identity theft prevention concepts under the Red Flags Rule / Regulation S-ID (high level). Identify common identity-theft red flags in operational processing and escalate per WSPs (high level). Apply fiduciary-information use restrictions (FINRA Rule 2060 concept) when handling customer data (high level). Importance of Escalating Complaints and/or Potential Red Flags Recognize what constitutes a customer complaint and the importance of documentation and timely escalation (high level). Identify potential operational red flags (fraud, suspicious funds movement, identity theft indicators) and escalate appropriately (high level). Apply firm escalation paths (supervisor, compliance, AML, operations management) and recordkeeping expectations (high level). Recognize reporting and recordkeeping rule themes for complaints and reportable events (FINRA Rules 4513 and 4530, high level). Recognize customer identification verification themes (USA PATRIOT Act Section 326 / CIP, high level). Broker-Dealer Supervision and Control Explain segregation of duties and why it reduces fraud, error, and conflicts in operations (high level). Recognize supervision and segregation among departments and appropriate escalation paths (high level). Explain information barrier concepts and why barriers protect sensitive information and customer data (high level). Control physical access to buildings, office spaces, files, and systems consistent with policies (high level). Apply entitlement policy concepts and restrict access to information to authorized users (high level). Understand written supervisory procedures (WSPs) and how to follow, maintain, and update supervisory procedures (high level). Recognize annual compliance meeting concepts and why firms document supervisory processes (high level). Explain business continuity plan (BCP) purpose and key covered elements (high level). Recognize customer disclosure requirements related to BCP and emergency contact information (high level). Recognize supervisory control system themes (FINRA Rules 3110/3120/3130) relevant to operations (high level). Prefer to practice first?Open in App Open series99_exam1