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Financial Services · Series 16

FINRA Series 16 – Supervisory Analyst Exam Practice Test

The Series 16 Supervisory Analyst Exam concerns oversight of securities research and the judgment involved in reviewing reports before distribution. The available practice material samples decisions about source attribution, confidential or uncertain information, earnings adjustments, debt analysis, and how to distinguish an issuer’s statements from an analyst’s views.

Exam overview

Exam providerFinancial Industry Regulatory Authority
Exam codeSeries 16
CategoryFinancial Services

About the FINRA Series 16 – Supervisory Analyst Exam

Supervisory review requires examining whether a report’s factual claims are supported, its sources are traceable, and its analysis is presented clearly enough for readers to assess. Practice scenarios address handling information subject to restrictions, delaying publication when material facts remain unresolved, and maintaining independent judgment during report review. They also test how analysts discuss nonrecurring charges without obscuring reported results, identify assumptions in third-party market estimates, and explain debt maturities in relation to refinancing risk. Another recurring task is separating management forecasts and other quoted statements from the analyst’s own estimates or conclusions. These skills connect research accuracy, disclosure, and editorial controls: a supervisor must recognize where evidence, attribution, or context could mislead readers and determine whether the report’s presentation supports a fair understanding of the analysis.

Sample Practice Questions

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

Question 1

A research report is distributed to a client in response to a request for investment advice tailored to that client’s circumstances. What distinction should the firm keep in mind?

  1. AA research report automatically becomes individualized advice whenever a client asks a question.
  2. BThe firm should distinguish general research from any separately provided recommendation or advice that takes the client’s specific circumstances into account.
  3. CA report can never be relevant to an individualized investment discussion.
  4. DThe firm may disregard the distinction if the report was originally distributed broadly.
Show answerCorrect answer: B

General research and individualized advice are not interchangeable. If a communication or follow-up addresses a particular client’s circumstances, the firm should assess the applicable obligations for that interaction rather than assume the original report controls its character.

Question 2

A company’s reported earnings include a restructuring charge that management describes as nonrecurring. How should an analyst handle it in an earnings discussion?

  1. AExclude it automatically from all measures because management calls it nonrecurring.
  2. BAssess its nature and recurrence, explain any adjustment, and distinguish reported results from analyst-adjusted results.
  3. CTreat it as a cash expense in every period regardless of the underlying facts.
  4. DOmit the charge because restructuring costs are not relevant to investors.
Show answerCorrect answer: B

An analyst should evaluate the item rather than accept a label automatically. If an adjusted measure is used, the report should explain the adjustment and keep it distinct from reported results so readers can assess both.

Question 3

A research report is to be distributed to a broad audience. Which approach is generally most appropriate for handling confidential information received from an issuer under a restriction?

  1. AInclude the information if it improves the report’s analysis
  2. BShare it only with favored institutional clients
  3. CFollow applicable confidentiality restrictions and consult the firm’s compliance procedures before using or distributing it
  4. DPublish it after removing the issuer’s name
Show answerCorrect answer: C

Information subject to confidentiality restrictions should not be used or distributed casually. The analyst should follow the applicable restrictions and firm procedures, including seeking compliance guidance when needed.

Question 4

A research department is considering whether to publish a report while a material fact remains uncertain and cannot yet be independently confirmed. What is the most prudent approach?

  1. APresent the fact as confirmed if it came from a company contact
  2. BOmit or appropriately qualify the uncertain fact and avoid drawing unsupported conclusions from it
  3. CUse the fact without qualification if the report is time-sensitive
  4. DState that the fact is immaterial without evaluating its relevance
Show answerCorrect answer: B

Unconfirmed information should not be presented as established fact. Appropriate qualification or omission, together with restraint in related conclusions, reduces the risk of misleading readers.

Question 5

A supervisory analyst is assessing whether a research report is ready for release. Which review approach best supports an independent supervisory judgment?

  1. AConfirm that the report’s analysis and disclosures meet applicable requirements, without directing the analyst to adopt a preferred investment conclusion.
  2. BReplace the analyst’s rating with the rating most likely to attract investor attention.
  3. CApprove the report whenever the covered company has publicly released its financial results.
  4. DLimit review to spelling and formatting because investment conclusions belong solely to the analyst.
Show answerCorrect answer: A

Supervisory review should assess compliance, support, and required disclosures while preserving the analyst’s independent judgment. A reviewer should not dictate a desired rating or treat public release of company results as a substitute for review.

Question 6

A supervisory analyst is reviewing a research report that cites a public industry study. What is the best way to support readers’ ability to verify the information?

  1. AIdentify the study and provide enough citation detail to locate the relevant material
  2. BDescribe the study as well known without naming it
  3. CInclude only the analyst’s interpretation of the study
  4. DReplace the citation with a general statement that the information is publicly available
Show answerCorrect answer: A

A specific, usable citation lets readers locate and assess the underlying source. General descriptions do not provide the same verification path.

Question 7

A research report quotes a company executive’s forecast for next year. What should the analyst do to help readers distinguish the forecast from the analyst’s own estimate?

  1. APresent it as the analyst’s estimate because it came from a company source
  2. BAttribute the forecast to the executive and clearly identify it as company guidance
  3. COmit the forecast’s source if the figure is publicly available
  4. DDescribe it as a consensus estimate
Show answerCorrect answer: B

Attribution and clear labeling help readers understand whose view is being presented and avoid confusing management guidance with the analyst’s independent estimate.

How to use this practice test

Access is free. The bank contains 50 published practice questions; each session presents up to 20 random questions. Use a session to work through research-review scenarios, then check the results to identify topics where your reasoning about sourcing, attribution, or information handling needs closer attention.

Preparation tips

  • For earnings scenarios, distinguish reported results from adjusted figures and assess whether a claimed nonrecurring item is explained with enough context.
  • Practice identifying whether a statement is a verified fact, a management forecast, a third-party estimate, or the analyst’s own conclusion; note how each should be attributed.
  • When reviewing source-based claims, check whether the report gives readers enough information to locate and evaluate the underlying study or data.
  • For scenarios involving restricted or uncertain information, identify the restriction or evidence gap first, then consider whether publication or broader distribution is appropriate.
  • In debt analysis, connect upcoming maturities with available refinancing information rather than treating the maturity schedule alone as a measure of risk.
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