Review the net-capital, customer-protection, and notification concepts that Series 14 expects compliance officers to recognize.
Series 14 is not a net-capital calculation exam, but it still expects the compliance officer to know when capital rules matter. Net capital, customer protection, and regulatory-notification provisions shape how the firm responds to financial stress, unusual activity, or business expansion. The compliance officer therefore needs enough capital literacy to identify risk and escalate it.
The exam often frames this material in terms of consequences. If the firm falls below a threshold, incurs a deficiency, or enters a business change that affects financial responsibility, what should the compliance officer recognize? The better answer is usually the one that connects the event to notice, restriction, or heightened review.
The key idea is that compliance has to understand capital signals even when finance teams do the computations. Ignoring the signal is itself a compliance failure.