According to FINRA, Bryan Adem Joseph was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for 18 months on August 9, 2023. The suspension was in effect from August 21, 2023, through February 20, 2025.
FINRA found that Joseph possessed and had access to his cell phone while taking the General Securities Representative (Series 7) examination. Joseph took the examination at his home, using a remote delivery platform. Prior to beginning the examination, Joseph attested that he had reviewed and would abide by FINRA's Rules of Conduct, which require candidates to store all personal items outside the room where they take the examination and prohibit access to personal items, including cell phones, during the examination. Prior to beginning the examination, Joseph also told the proctor that his cell phone was stored in another room.
FINRA's qualification examinations, including the Series 7 exam, assess whether individuals have the knowledge and competency required to perform the functions of a registered representative. These examinations are a critical component of FINRA's investor protection mission because they help ensure that only qualified individuals are allowed to sell securities and provide investment advice to the public.
The integrity of the examination process depends on candidates following the rules and not using unauthorized materials or assistance. Rules prohibiting access to cell phones and other personal items during examinations exist to prevent cheating and to ensure that examination results accurately reflect each candidate's knowledge and competency.
In this case, Joseph not only possessed and had access to his cell phone during the examination, but he also falsely attested that he would follow the rules and falsely told the proctor that his cell phone was stored in another room. This demonstrates deliberate dishonesty and an intentional violation of the examination rules.
Cell phones can be used to access information on the internet, to communicate with others who might provide answers, or to photograph examination questions. Even if Joseph did not actually use his cell phone during the examination, his possession of and access to it violated the rules and undermined the integrity of the examination process.
Cheating on qualification examinations is a serious violation because it means that individuals who have not demonstrated the required knowledge and competency may be allowed to work in the securities industry. This puts investors at risk because these individuals may not have the knowledge necessary to properly advise customers or comply with securities laws and regulations.
The 18-month suspension reflects the seriousness of Joseph's conduct and sends a message that FINRA will not tolerate cheating on its examinations. Integrity and honesty are essential qualities for securities professionals, and Joseph's conduct demonstrates a troubling lack of both.
Investors should have confidence that their financial professionals have passed legitimate examinations and possess the required knowledge and competency to serve them.
