The Financial Industry Regulatory Authority barred two brokers from the industry after accusing them of cheating on qualification exams last year. It marks the first time the regulator brought actions against brokers for cheating on remote exams.
FINRA barred Brandon Autiero, a N.J.-based broker affiliated with Equitable Advisors, and Harris Kausar, an aspiring investment banking representative with Barclays based out of New York. The enforcement actions put exam cheaters “on notice,” according to Jessica Hopper, FINRA’s Enforcement Department head and executive vice president.
“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,” she said in a statement.
According to the settlement letter for Autiero, the broker took several qualification exams in March, June, July and September 2021, and in each instance Autiero received an accommodation to take the exam remotely.
During online tests, proctors use camera-equipped computers to monitor the exam process, according to FINRA. All test takers must also store personal items outside the room, and not use any devices to access the internet, but during the exams, Autiero logged online, checking with several web forums for help answering the questions.
The allegations mirrored those against Kausar, who took a Series 79 exam in December 2021 and also received accommodation for an online exam.
In settling the charges, the two brokers accepted FINRA’s findings and punishment without admitting or denying the charges. Autiero was permitted to resign from Equitable after “admitting having violated ethical standards” during a FINRA exam, according to his BrokerCheck profile.
FINRA’s Securities Industry Essentials, Series 6 and Series 7 exams can all be taken in-person or remotely, while other FINRA exams can be taken remotely with permission.
FINRA-regulated firms have also called for branch exams to continue to be conducted remotely in lieu of in-person visits, arguing the industry was prepared to work with remote inspections on a permanent basis, with one Cetera compliance rep telling FINRA last year that regulators should consider conducting all regular exams remotely unless an in-person visit is essential, and that the downsides of on-site visits outweighed the benefits.
Earlier this year, FINRA extended the rule allowing remote office inspections that had been in place throughout 2020 and 2021 throughout the end of 2022.
