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Financial Services · Series 10

FINRA Series 10 – General Securities Sales Supervisor Exam Practice Test

The Series 10 practice page covers general securities sales supervision: the oversight of registered representatives, customer accounts, communications, transactions, and branch operations. Its questions sample supervisory choices involving account changes, customer instructions, complaints, records, and continuity of oversight. The focus is on recognizing when a situation calls for review, escalation, documentation, or follow-up.

Exam overview

Exam providerFinancial Industry Regulatory Authority
Exam codeSeries 10
CategoryFinancial Services

About the FINRA Series 10 – General Securities Sales Supervisor Exam

Supervisory work requires matching a customer or representative situation to appropriate review and control steps. Practice scenarios address changes in investment objectives, written security recommendations, account activity, payment deadlines, and requests to move proceeds to a differently titled bank account. Other questions involve handling subpoenas for customer records, investigating disputed statement entries, managing representative transfers, and maintaining coverage when a supervisor is absent. These situations call for careful attention to customer interests, transaction details, firm procedures, documentation, and escalation to the right internal function. Business continuity planning also requires testing whether alternate operations can support essential supervisory responsibilities. Use the scenarios to distinguish what a supervisor should examine first from actions that require additional review or approval; the question bank samples these topics and does not establish official exam coverage or weighting.

Sample Practice Questions

Review a selection from this exam's published US Practice Tests practice bank.

Question 1

A customer asks a registered representative to act as trustee for a family member’s account. What is the most appropriate supervisory step?

  1. AAllow the arrangement if the customer gives verbal consent
  2. BRequire the representative to disclose the role and obtain firm review and approval before acting
  3. CPermit the arrangement only if the account is held at another firm
  4. DTreat the role as a personal matter outside the firm’s supervision
Show answerCorrect answer: B

Acting as a trustee can create conflicts of interest and raise concerns about control over customer assets. The representative should disclose the proposed role and follow firm procedures for review and approval before accepting it.

Question 2

A supervisor reviews a customer's account and finds that the customer's investment objectives have changed materially after a major life event. What is the most appropriate supervisory focus?

  1. AEnsure the firm's customer profile is updated and future recommendations are evaluated against the current profile
  2. BKeep the original profile unchanged to preserve consistency across account records
  3. CTreat the change as effective only after the next annual statement is mailed
  4. DAssume the customer wants the same risk level unless the customer closes the account
Show answerCorrect answer: A

Customer information should be kept reasonably current, particularly when the firm learns of a material change. Current profile information helps ensure that subsequent recommendations are evaluated in light of the customer's circumstances and objectives.

Question 3

A representative wants to send a customer a personalized written recommendation about a security. What should the representative do before sending it?

  1. AUse any available performance figures without checking their context
  2. BEnsure the communication is fair, balanced, and consistent with firm review procedures for the communication type
  3. CInclude only favorable information because the message is personalized
  4. DAvoid identifying the risks because the customer already knows the representative
Show answerCorrect answer: B

Written investment communications should not be misleading and should present material risks and relevant information fairly. The representative should follow the firm’s applicable review and approval process before distribution.

Question 4

A branch receives a subpoena seeking customer account records. What should the branch supervisor generally do first?

  1. ASend all requested records directly to the requester immediately.
  2. BRefer the subpoena promptly to the firm’s legal or compliance function and preserve relevant records.
  3. CAsk the customer to decide whether the firm should respond.
  4. DDestroy drafts and internal notes that are not specifically named in the subpoena.
Show answerCorrect answer: B

Legal process should be routed to the firm’s appropriate legal or compliance personnel for review and response. Relevant records should be preserved; branch staff should not independently decide the scope of disclosure or destroy potentially relevant materials.

Question 5

A customer complains that a monthly account statement contains a transaction the customer does not recognize. What should the firm encourage the customer to do?

  1. AWait until the next annual review to see whether the transaction reverses
  2. BContact the firm promptly so the transaction can be investigated and any necessary action taken
  3. CAsk the representative to delete the transaction from the statement
  4. DReport it only to the issuer of the security
Show answerCorrect answer: B

Prompt notice gives the firm an opportunity to review the transaction, determine whether it was authorized or erroneous, and address any applicable reporting or correction obligations. The transaction should not be altered or ignored.

Question 6

A firm’s business continuity plan identifies an alternate site for operations. Which supervisory consideration is most important in testing the plan?

  1. AWhether the firm can maintain essential functions and communicate with customers during a disruption
  2. BWhether employees can continue using their usual office furniture
  3. CWhether all business records can be recreated from memory
  4. DWhether the firm can suspend customer access indefinitely without notice
Show answerCorrect answer: A

Business continuity planning is intended to support the continuation or timely recovery of critical operations, including appropriate customer communications and access to essential services, when a disruption occurs. Testing helps identify practical gaps.

Question 7

A firm’s registered representative is transferring to another member firm. Which action best supports an orderly transition of customer accounts?

  1. AThe representative should move customer records personally to the new firm
  2. BThe firms and representative should follow applicable transfer procedures and protect customer confidentiality
  3. CThe representative should contact all customers using a personal email list before notifying the current firm
  4. DThe new firm should assume that every customer wants to transfer unless the customer objects
Show answerCorrect answer: B

Account transfers should be handled through authorized procedures, with customer instructions and applicable requirements observed. Customer information must be protected; a representative should not remove or use firm records outside permitted processes.

How to use this practice test

Access the free Series 10 practice questions in sessions of up to 20 randomly selected items from the 50-question bank. After each session, review the results to identify supervisory scenarios that need more attention, such as account changes, customer complaints, or branch coverage.

Preparation tips

  • For account-change scenarios, identify which customer information has changed and how it affects the suitability of future recommendations or transactions.
  • Compare customer transaction instructions with account ownership and payment details; note when an unusual destination warrants supervisory review before processing.
  • Practice outlining an initial response to a disputed statement entry or subpoena, including investigation, record handling, and appropriate escalation.
  • For branch coverage and business continuity scenarios, check who assumes supervisory duties and whether essential controls can operate at an alternate site.
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