According to FINRA, Thomas John Lykos Jr. was suspended from association with any FINRA member in all capacities following a Securities and Exchange Commission (SEC) opinion that modified a previous FINRA sanction.
The SEC sustained FINRA's findings that Lykos violated FINRA Rule 2010 by violating multiple rules of conduct while taking the Series 24 General Securities Principal Exam. Specifically, Lykos violated the rules by taking an unscheduled break for a purpose other than using the restroom and by attempting to conceal or minimize writing on his person.
Lykos conceded that his violations may have ultimately interfered with the testing center's operations and were arguably disrespectful and disruptive. However, the SEC set aside FINRA's finding that Lykos received outside assistance during the exam, as it found it could not conclude by a preponderance of evidence that he received such assistance.
Based on the findings it set aside, the SEC reduced FINRA's original bar to a suspension. The suspension was in effect from December 16, 2021, through July 18, 2025, when the SEC's opinion was issued.
This case illustrates the seriousness with which examination integrity is treated in the securities industry. Even conduct during an examination that falls short of actually receiving outside assistance can result in significant sanctions if it violates examination rules.
The Series 24 examination qualifies individuals to act as General Securities Principals, who are responsible for supervising a firm's securities business. The integrity of this examination is important because principals play a critical role in ensuring compliance and protecting investors.
Individuals in the securities industry should understand that examination rules must be followed strictly, and violations can have long-lasting consequences for their careers.