General Securities Sales Supervisor (Series10) Practice Exam

Which license allows the holder to approve mutual fund advertising?

1. A Series 9/10

2. B Series 24

3. C Series 26

4. D Series 27

The correct answer is: B Series 24

The Series 24 license is specifically designed for individuals who are qualified to act as a principal and supervise various activities within a brokerage firm, which includes the approval of advertising and sales material for investment products such as mutual funds. This license is essential for ensuring that all communications with the public adhere to regulatory standards and guidelines established by the Financial Industry Regulatory Authority (FINRA) and other regulatory bodies. Holders of the Series 24 license possess the authority to review and approve promotional materials, ensuring that the advertisements are not misleading and comply with applicable regulations. This role is integral in maintaining ethical standards in the marketing of mutual funds and other securities, as it safeguards investors by ensuring that the information presented to them is accurate and fair. The other licenses listed do not provide the same authority over advertising approval. For instance, the Series 9/10 is focused on options trading and supervisory roles related to options and the Series 26 is aimed at investment company products, while the Series 27 is a financial and operations principal license centered around the financial operations of a firm, such as ensuring compliance with the financial requirements. None of these licenses grant the same level of oversight over marketing and advertising materials as the Series 24 does.