FINRA Series 26 Course Notes

F1 is the people-and-registration function. Think: qualify the person, file accurately and on time, supervise the office, distinguish outside activities from private securities transactions, and keep personnel current through CE.

• Treating firm termination as the event that creates statutory disqualification.

• When a registration question gives a date, calculate the deadline before evaluating distractors.

F2 is the largest function. Think like the reviewing principal: customer first, product rule next, costs/conflicts disclosed and mitigated, communications accurate, variable-annuity documentation complete, compensation controlled, and red flags escalated.

• Using 'suitable' as if it automatically satisfies Reg BI.

• For recommendation questions, identify customer type, recommendation, product rule, customer profile, costs and conflicts.

F3 is the firm's control room: books and records, AML/CIP/SAR, supervisory controls and inspections, complaint/reporting workflows, privacy/cyber safeguards, financial responsibility, custody/possession-or-control and business continuity.

• Treating only email as a business communication record.

• For F3, identify the control owner, the required record/report, the deadline and the escalation path.