Ace the Series 10 in 2025 – Unleash Your Inner Securities Superstar!

A FINRA member municipal dealer must comply with the regulatory requirements set forth by FINRA regarding the number of municipal securities principals based on the number of employees engaged in municipal securities activities. According to FINRA rules, a firm with 6 to 10 individuals working in municipal securities must designate at least one municipal securities principal.

In this scenario, the dealer has 7 employees engaged in municipal business, which falls within that range. Therefore, having one municipal principal is sufficient to meet the regulatory requirement. This reflects FINRA's guiding principle of ensuring that each firm has enough qualified supervisory personnel to oversee municipal business activities, while also recognizing that smaller firms can effectively manage with fewer principals.

This principle fosters compliance and oversight, ensuring a balance between regulatory requirements and operational efficiency within a smaller municipal dealer.