Preparatory Course Series 31 USA American Broker Examination Funds (FINRA)
Series 31 – Futures Managed Funds Exam
The Series 31 exam—the Futures Managed Funds Examination—is a National Futures Association (NFA) exam administered by FINRA. The exam consists of 45 scored questions. Candidates have one hour to complete the exam. The passing score is 70%. An individual may use the Series 31 if:
- – the individual is registered with FINRA as a General Securities Representative with a FINRA member firm;
- – that FINRA member firm is also an NFA Member FCM or IB or an applicant for NFA membership as an FCM or IB and is sponsoring the individual for AP registration; and
- – the individual is going to limit futures activities on behalf of that NFA/FINRA sponsor to soliciting funds, securities or property for participation in a commodity pool, soliciting discretionary accounts to be managed by CTAs or supervising persons who perform these same limited activities.
The provided information is based on https://www.finra.org/registration-exams-ce/qualification-exams/series31 and https://www.nfa.futures.org/registration-membership/how-to-register/proficiency-requirements.html
General market knowledge
1
Disclosure documents
2
Margin
3
Futures and forward contracts
4
Price limits
5
Open interest
6
Offsetting contracts
7
“Marking-to-market”
8
Settlement
9
Spread trades
10
Basis
11
Hedging
12
Yield curve
13
Cost of carry
14
Leverage
15
Price volatility
General Regulation
1
Arbitration claims and awards
2
NFA disciplinary process
3
Just and Equitable Principles of Trade (NFA Compliance Rule 2-4)
4
Supervision (NFA Compliance Rule 2-9)
5
NFA Compliance Rule 2-9, supervision of employees
6
“Qualified Eligible Participant”
7
Registration requirements
8
Trading on foreign markets
9
Books and records to be maintained
CPO/CTA Regulations (NFA Compliance Rule 2-13)
1
Reports to customers
2
Exemptions from registration
3
Records to be maintained
4
Limited partnerships
5
Accepting funds from customers
CPO/CTA Disclosure Documents
1
Management and incentive fees
2
Performance records
3
Conflicts of interest
4
How long a CPO or CTA can use a disclosure document
5
Pool units purchased by principals
6
Disclosure statements
7
Business backgrounds of principals
8
NFA review of document before use
9
Disclosure of disciplinary action
Customer Information and Risk Disclosure (\"Know your Customer\") (NFA Compliance Rule 2-30)
1
Client information required
2
Risk disclosures
Disclosure by CPOs and CTAs Required for Upfront Fees
1
Disclosure of upfront fees and expenses
2
Effect of upfront fees and organizational expenses on net performance
Communication with the Public and Promotional Material (NFA Compliance Rule 2-29)
1
Definition of promotional material
2
Standardized sales presentations
3
Use of a third-party consulting or advertising firm
4
Reprints of articles from industry publications
5
Recordkeeping of promotional material
6
Past performance
7
Hypothetical trading results
8
Written procedures for promotional material
9
Supervisory review of promotional material
