The Financial Industry Regulatory Authority released Tuesday Regulatory Notice 20-33 seeking comment on new formal procedures for bringing actions against non-associated persons who cheat during a FINRA qualification exam.
The proposed formal procedures — a new expedited proceeding rule — would also strengthen existing processes for brokers who cheat or misbehave during a FINRA exam.
The reg notice seeks comment on FINRA Qualification Examinations Rules of Conduct as well as corresponding amendments to the registration requirements rule, Rule 1210.
“Although there are few instances of cheating, because persons who are not yet associated with a member firm may take the Securities Industry Essentials (SIE) examination or other FINRA qualification examinations, formal procedures are needed to address misconduct by non-associated persons when it occurs,” FINRA states.
Comments are due by Nov. 23.