Finra barred two individuals from the financial industry for cheating on online qualification exams, the first enforcement actions the regulator has taken in relation to remote examinations.
The Financial Industry Regulatory Authority Inc. announced Wednesday that it imposed bars on Brandon Autiero, formerly associated with Equitable Advisors, and Harris Kausar, formerly associated with Barclays Capital Inc. In separate incidents, Autiero and Kausar accessed public online forums to assist with answering questions during examinations.
Finra has been offering remote exams for more than a year to accommodate social distancing concerns related to the coronavirus pandemic. Most industry qualifying exams are administered in person. Finra said it has suspended or barred 12 individuals since January 2021 who cheated or possessed unauthorized materials during in-person exams.
“Test cheaters are on notice: regardless of the testing environment, Finra remains vigilant in our efforts to detect cheating and will vigorously pursue disciplinary action — including permanent bars — against any individual who cheats on qualification examinations,” Jessica Hopper, Finra executive vice president and head of enforcement, said in a statement.
An attorney for Autiero declined to comment. An attorney for Kausar did not immediately respond to a request for comment. In settling with Finra, Autiero and Kausar accepted the regulator’s findings without admitting or denying them.
In order to become registered as securities professionals, individuals must pass exams administered by Finra covering topics that include securities products and financial regulation. The Securities Industry Essentials, Series 6 and Series 7 can be taken online or in-person through regular scheduling. Other Finra exams can be taken online by request.
Firms that help people prepare for the exams backed Finra’s enforcement moves.
“Given that we work in an industry where cheating has very severe financial consequences to firms and clients, taking action on something like a regulatory exam seems reasonable and a best practice,” said Brian Marks, president of Knopman Marks Financial Training.
So much of the work in financial services is based on trust that it makes sense to begin ensuring it during qualification exams, said Jeremy Solomon, co-founder and president of Solomon Exam Prep.
“Trust is the key element of everything in our system,” Solomon said. “It’s great to hear Finra is enforcing these rules. It’s a positive sign for the industry, issuers, investors and everyone involved. We want a competent and honest industry.”
Autiero cheated on several occasions last year while taking the Finra Series 7 exam as well as the Series 63 and 66 exams sponsored by the North American Securities Administrators Association. He became a general securities representative with Equitable Advisors in March 2021 but resigned in February 2022 after Finra began investigating him, according to the Finra settlement.
Kausar began working for Barclays in July 2021 and was attempting to become an investment banking representative. He cheated during a Finra Series 79 exam in December 2021. He was terminated by Barclays in February 2022 because he didn’t pass the test in the required time frame, according to the Finra settlement.
Online exams use computers equipped with cameras and are monitored remotely by exam staff, Finra said. Marks said proctors make a detailed assessment of the room where tests are taken and the computer screen of the test taker.
“It’s a very thorough screening process,” he said. “I know it’s thorough because clients complain about it.”
Solomon said he feels bad for the two people who have had their brokerage careers ended. But the situation emphasizes a point he makes to his clients about the hours of study required for qualifying exams.
“There is no shortcut,” Solomon said.
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