Free Series 26 Practice Exam
Series 26 Investment Company Principal practice exam covering supervision of mutual fund sales, variable products, compliance, and operations. No signup required.
Series 26 Exam Topics
Supervision of Sales
Mutual fund suitability, breakpoints, switching, sales literature, variable annuity supervision, and Reg BI obligations. ~39% of Series 26.
Supervision of Compliance
Written supervisory procedures, FINRA Rule 3110, branch examinations, regulatory reporting, and compliance program oversight. ~23% of Series 26.
Supervision of Operations
Customer account supervision, order processing, margin, customer protection rule, AML, and recordkeeping for investment company products. ~22% of Series 26.
General Broker-Dealer Activities
Registration requirements, continuing education, supervision of associated persons, Form U4/U5, and FINRA member firm obligations. ~16% of Series 26.
Full Series 26 Practice Exam
All four sections mixed and weighted by the official FINRA Series 26 blueprint. 110 questions, 180 minutes.
About the Series 26 Exam
The Series 26 Investment Company and Variable Contracts Products Principal exam is a FINRA principal qualification required for supervisors of registered representatives who sell mutual funds, variable annuities, variable life insurance, and unit investment trusts. It is the principal companion to the Series 6 representative license — every FINRA member firm where representatives hold Series 6 must have at least one Series 26 principal on staff. The exam qualifies the holder to supervise investment company product sales, operations, and compliance at a FINRA-member broker-dealer.
The exam contains 110 scored questions (120 total including 10 unscored pretest questions) across four content areas, with a 180-minute time limit and a 70% passing score. Prerequisites are the SIE plus either the Series 6 or Series 7. The Series 26 is distinct from the Series 24 — the Series 24 is a broader general securities principal qualification, while the Series 26 is specific to investment company products supervision.
Series 26 Exam Topic Breakdown
| Topic | Weight | Key Areas |
|---|---|---|
| Supervision of Sales | 39% | Mutual fund suitability, breakpoints, letters of intent, rights of accumulation, variable annuity exchanges (1035), sales literature review |
| Supervision of Compliance & Administrative Activities | 23% | FINRA Rule 3110, written supervisory procedures, branch examination, regulatory reporting, review and approval obligations |
| Supervision of Operations | 22% | Customer account supervision, order processing, margin, customer protection rule (Rule 15c3-3), AML, recordkeeping |
| General Broker-Dealer Activities | 16% | FINRA membership, registration requirements, continuing education, Form U4/U5, supervision of associated persons |
Sample Series 26 Exam Questions
1. A registered representative recommends a variable annuity exchange (1035 exchange) to a customer who has held their current contract for only 8 months. As the Series 26 principal reviewing this transaction, which of the following is your primary supervisory obligation?
2. Under FINRA Rule 3110, a member firm's written supervisory procedures (WSPs) must be updated when:
3. A customer's mutual fund account shows a pattern of switching between funds in the same fund family without apparent investment rationale. As the principal, this activity most likely warrants review under which FINRA standard?
Series 26 Study Tips
Supervision of Sales is the largest section at 39% — focus on mutual fund breakpoints and the supervisory obligation to ensure customers receive all applicable discounts including rights of accumulation and letters of intent. Variable annuity supervision is heavily tested: know FINRA Rule 2330 principal review requirements for variable annuity exchanges, the required comparisons, and the timing of approval before processing.
For Compliance (23%), FINRA Rule 3110 written supervisory procedures is the cornerstone topic. Understand what WSPs must contain, who is responsible for maintaining them, and the triggers for updating them. For Operations (22%), the customer protection rule (SEC Rule 15c3-3) and AML supervisory obligations are key. Know the difference between Series 26 (investment company products only) and Series 24 (broader general principal authority) — the exam will test this distinction.
Frequently Asked Questions — Series 26
What is the difference between the Series 26 and Series 24?
The Series 26 qualifies you to supervise investment company products (mutual funds, variable annuities, variable life, UITs) — it is specifically tied to Series 6 business. The Series 24 is a broader general securities principal qualification that authorizes supervision of virtually all types of securities business including Series 7 activities. A Series 26 principal cannot supervise Series 7-level business without the Series 24.
Do I need the Series 6 to take the Series 26?
You need the SIE plus either the Series 6 or Series 7 as a prerequisite for the Series 26. The Series 6 is the most common prerequisite since the Series 26 is the principal companion to it. If you already hold the Series 7, you can still take the Series 26 to add investment company products principal authority.
How long should I study for the Series 26?
Most candidates study 60–100 hours over 4–6 weeks. The Series 26 is a principal-level exam and covers supervisory rules in detail. Focus on FINRA Rule 3110 (supervision), Rule 2330 (variable annuity principal review), and the content areas for mutual fund suitability and breakpoints. Previous experience as a registered representative with Series 6 significantly reduces prep time.
What is FINRA Rule 2330 and why is it important for the Series 26?
FINRA Rule 2330 governs member firm responsibilities for deferred variable annuities. It requires that a registered principal review and approve each deferred variable annuity purchase or exchange before it is processed. The rule was specifically enacted to address variable annuity suitability problems and requires a substantive comparison of the proposed transaction. This rule and its application to 1035 exchanges is one of the most heavily tested areas on the Series 26.
What happens if a principal approves an unsuitable variable annuity exchange?
FINRA can sanction both the representative who recommended the unsuitable exchange and the principal who approved it. Principal liability is a key Series 26 concept — supervisors are not insulated from liability simply because someone else recommended the transaction. The principal's independent review obligation is real and FINRA has fined and suspended principals who rubber-stamped inappropriate exchanges without performing substantive review.