According to FINRA, Erin Bridget Settle was assessed a deferred fine of $5,000 and suspended for 18 months for possessing unauthorized materials while taking the Series 66 examination.

Prior to the examination, Settle attested that she had read and would abide by FINRA's Qualification Examinations Rules of Conduct. These rules prohibit the use or attempted use of personal notes and study materials during examinations and require candidates to store all personal items in provided lockers before entering the test room.

During an unscheduled break, Settle went to the restroom where she had access to and possessed personal notes and study materials that she had placed there prior to starting the examination. These materials contained exam-related content. This conduct constitutes cheating on a professional qualification examination.

Securities industry examinations exist to ensure that registered representatives have the knowledge and competence necessary to serve investors properly. When individuals cheat on these examinations, they undermine the entire licensing system and may ultimately serve customers without the required knowledge. Someone who doesn't actually possess the knowledge tested by the Series 66 examination may give incorrect advice about securities laws, investment recommendations, or ethical obligations.

The Series 66 examination tests knowledge of state securities regulations, ethical practices, and investment advisor requirements. This knowledge is fundamental to serving investors properly and complying with securities laws. A representative who cheats on this exam and doesn't actually possess this knowledge poses risks to investors.

The fact that Settle placed study materials in the restroom before the examination began indicates premeditation. This was not an impulsive decision or momentary lapse in judgment, but rather a planned scheme to cheat on the examination. The premeditation makes the violation more serious.

For investors, this case raises concerns about exam integrity and whether registered representatives truly possess the knowledge their licenses supposedly demonstrate. While most representatives honestly pass their examinations, this case shows that some may obtain licenses through cheating. Investors should be aware that professional licenses, while important, don't guarantee competence or integrity. The suspension is in effect from May 16, 2022, through November 15, 2023.