The Financial Industry Regulatory Authority suspended a Goldman Sachs investment banking representative for 18 months after it was learned that the rep had her cellphone with her while taking the Securities Industry Essentials Exam.
The rep submitted a letter of acceptance, waiver and consent to FINRA in which she agreed to the suspension and to pay a $5,000 fine over the incident, but didn’t admit or deny the findings. FINRA accepted the letter on Wednesday.
Goldman Sachs submitted a Uniform Application for Securities Industry Registration or Transfer (Form U4) on behalf of the rep, who was looking to become registered via the firm, in 2018.
On March 16, 2019, the rep took the Investment Banking Registered Representative Examination (Series 79TO), according to FINRA’s BrokerCheck website. She then took the SIE test April 8 and it was learned that she “possessed and had access to a prohibited device while taking” it, violating FINRA Rule 2010, according to the letter.
Prior to starting the SIE, the rep “attested that she had read and would abide by” FINRA’s Qualification Examination Rules of Conduct, the letter said. Those rules specifically “prohibited the use or possession of certain items, including, among other things, electronic devices and phones, in the examination room or during unscheduled restroom breaks,” according to the letter.
It wasn’t clear, however, if the rep used the cellphone while taking the exam. FINRA said it couldn’t comment beyond what was in the agreement. Goldman Sachs, the rep and her attorney didn’t immediately respond to requests for comment.
— Check out FINRA Suspends a Top Advisor for Cheating on CE Coursework on ThinkAdvisor.