Cheating on Exams Will Get You Barred, FINRA Warns

Hopper notes that every year, FINRA enforcement brings disciplinary actions against individuals caught cheating on FINRA exams.

"And every year, I am taken aback by the sheer variety and creativity of the cheating attempts," she said.

She points to a May 1 complaint the broker-dealer self-regulator filed against Thomas John Lykos Jr., a firm's chief compliance officer who, while taking the Series 24 exam at a testing center, "was captured on video reviewing notes he had written in between his fingers. Upon completing the exam, a test center employee confronted the CCO and asked to see and photograph his hands."

The enforcement division alleges Lykos "copied and removed examination content, received assistance while taking the exam, and improperly left the testing center for an unexcused break."

Lykos denied cheating on the exam and requested a hearing. After considering the evidence admitted during a two-day hearing, along with post hearing briefs, the Hearing Panel concluded that Lykos violated NASD Rule 1080 and FINRA Rule 2010 and imposed a bar.

Hopper notes that besides writing on body parts, "other respondents have attempted variations on the test-cheating theme. One respondent offered to pay a test center employee $2,000 to help him pass an exam. Multiple respondents who received failing exam scores have altered their score reports to reflect passing scores and then provided the falsified score reports to their member firms."

FINRA warns that all exams are closed book and that test-takers' actions in the online testing environment are video- and audio-recorded. Unscheduled breaks must be reported to the test proctor first, and only restroom breaks are permitted.

— Related on ThinkAdvisor:

• Analyst Busted With Exam Cheat Sheets in His Shorts: FINRA
• Brokers Beware: FINRA Warns Member Firms of Impostor Site
• FINRA Suspends a Top Advisor for Cheating on CE Coursework