What Is the Series 31?

The Series 31 license, formally known as the Futures Managed Funds Examination, is a limited-purpose securities license administered by the Financial Industry Regulatory Authority (FINRA). It is intended for individuals who already hold certain securities licenses—typically the Series 6 or Series 7—and who wish to engage in the sale of managed futures products. The license is specifically relevant to registered representatives who plan to receive compensation for soliciting clients to invest in commodity pools or managed futures funds.

Rather than serving as a standalone registration for commodities professionals, the Series 31 functions as a streamlined alternative to the more comprehensive Series 3 exam, which qualifies individuals to sell a broader range of futures and commodities products.

Regulatory Background

The sale of futures and commodity-related investment products in the United States falls under the regulatory jurisdiction of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Generally, individuals who wish to solicit futures business must register as Associated Persons (APs) with the NFA and pass the Series 3 exam. However, when representatives are only marketing shares of commodity pools or managed futures funds that are operated by Commodity Pool Operators (CPOs) or advised by Commodity Trading Advisors (CTAs), the regulatory framework provides an exemption from the full Series 3 exam—this is where the Series 31 comes in.

The Series 31 exam satisfies a registration requirement for those seeking to function as APs but only within the limited scope of managed futures funds offered through firms that are both NFA members and broker-dealers regulated by FINRA.

Exam Structure and Content

The Series 31 exam is shorter and narrower in scope than the Series 3. It consists of 45 scored questions, with an additional 5 unscored pretest questions, making a total of 50 questions. Candidates are given one hour to complete the exam and must achieve a passing score of 70% or higher.

The exam focuses on a limited range of topics relevant to managed futures, including:

• Basic futures trading concepts
• Commodity pool operations
• Disclosure and promotional materials
• Registration requirements
• Anti-fraud provisions under the Commodity Exchange Act
• Ethics and business conduct

Because Series 31 is designed for individuals who already understand general securities regulations, it assumes a foundational knowledge of investments and regulation from previous licensure.

Who Needs the Series 31 License?

The Series 31 is primarily needed by registered representatives of broker-dealers who are already licensed via the Series 6 or Series 7 and who want to solicit or accept client investments into managed futures products. These professionals often work in environments where commodity pools are made available through mutual fund platforms or structured products. The license allows them to participate in this specific niche of the alternative investment market without needing the more expansive Series 3 license.

This license is not typically required for professionals whose activities are limited to equities, mutual funds, or bonds and who do not engage in selling commodity-related pooled investment vehicles. Likewise, if a representative plans to provide advice on individual futures contracts or engage directly in futures trading, the Series 3 would be the appropriate credential, not the Series 31.

Registration and Sponsorship

To take the Series 31 exam, an individual must be sponsored by a FINRA-member firm. The sponsoring firm initiates the process by filing a Form U4 on the applicant’s behalf. Once the registration is approved and exam fees are paid, the candidate can schedule the test through Prometric, which administers FINRA exams.

Unlike some other financial credentials, there are no formal education or work experience requirements to sit for the Series 31. However, because it builds upon knowledge tested in other licensing exams, it is not available to individuals who are not already registered via the Series 6 or Series 7.

Continuing Compliance

Holding a Series 31 license also involves ongoing regulatory compliance. As with other securities licenses, individuals must remain registered with a sponsoring firm and keep their FINRA registration active. They are also subject to continuing education requirements established by FINRA, including both firm-element and regulatory-element training.

Additionally, individuals must comply with NFA regulations governing business conduct, disclosures, and recordkeeping as they relate to the solicitation of managed futures products. Any violations can result in enforcement actions, suspension, or revocation of registration.

The Bottom Line

The Series 31 license provides a regulatory path for securities professionals to engage in the sale of managed futures funds without taking the broader Series 3 exam. It is tailored for individuals already licensed to sell mutual funds or general securities and who are affiliated with broker-dealers that also offer commodity pool investments. While narrow in scope, the license fills a distinct regulatory niche, enabling financial professionals to participate in alternative investment strategies while maintaining compliance with FINRA and NFA rules.