A broker associated with Equity Services Inc. in Hauppauge, New York, has accepted a one-month suspension and $5,000 fine over Financial Industry Regulatory Authority findings that someone else completed the continuing education required to renew his state insurance license.
Rod Hurowitz, also a registered investment advisor with ESI Financial Advisors, accepted FINRA's findings without admitting or denying them, according to an acceptance, waiver and consent letter posted on FINRA's website Wednesday.
In December 2022, Hurowitz certified to New York state regulators that he had personally completed the required continuing education "when, in fact, another person had completed that CE on his behalf," violating a FINRA rule, according to the letter.
New York requires individuals to hold insurance licenses to sell various insurance products, including securities such as variable annuities. These licenses must be renewed every two years and generally require licensees to complete 15 CE credits, FINRA noted.
Hurowitz was required to renew his license in December 2022. In September that year, someone else completed 15 hours of insurance CE credits on his behalf. "Although Hurowitz knew that he had not completed the required CE, in December 2022, he certified to the State of New York that he had personally completed those CE credits," the letter said.
FINRA last year disciplined 62 brokers based on similar findings that they had cheated on their New York insurance continuing education requirements. Records showed the brokers, who neither admitted nor denied the allegations, consented to sanctions over allegations they had certified that they had completed the required continuing education when in fact another unidentified individual completed the training on their behalf.
A spokesperson for Equity Services Inc., a broker-dealer and RIA affiliate of National Life Insurance Co., told ThinkAdvisor via email Thursday:
"Equity Services is fully committed to strict compliance with regulatory agencies and took immediate, decisive action to cooperate with FINRA from the very beginning of their investigation. We also conducted a thorough internal investigation and took all necessary steps to address the situation.
"We hold all financial representatives and their teams to the highest standards, expecting them to not only meet continuing education requirements to maintain their licenses and registrations but also to fully comply with company policies and always uphold our rigorous standards."
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