FINRA requested comment on proposed procedures to address misconduct by non-associated persons during FINRA qualification examinations.
The proposal, among other things, would:
- add a new rule, FINRA Rule 9560 ("Failure to Comply with the FINRA Qualification Examinations Rules of Conduct"), and amend FINRA Rule 9559 ("Hearing Procedures for Expedited Proceedings Under the Rule 9550 Series") accordingly, to authorize FINRA to take expedited action against both associated and non-associated persons in violation of the Rules of Conduct;
- amend FINRA Rule 1210.05 to (i) make clear that non-associated persons taking any FINRA qualification exam must agree to be subject to the Rules of Conduct, (ii) clarify that FINRA may impose remedies upon determining that a non-associated person has violated the Rules of Conduct, (iii) broaden the types of remedies that FINRA can impose on non-associated persons who violate the Rules of Conduct, (iv) allow expedited proceedings for the resolution of violations of the Rules of Conduct by both associated and non-associated persons, and (v) disqualify individuals who are prohibited from taking a FINRA qualification exam from being associated with any member, registered or unregistered, during the time that the individual is prohibited; and
- establish an eligibility process within the FINRA Rule 9520 Series ("Eligibility Proceedings") for persons who (i) do not meet the FINRA Rule 1210.05 qualification requirements, (ii) "are not subject to a statutory disqualification," and (iii) are looking to associate or continue association with a sponsoring member firm.
Comments on the proposal must be submitted by November 23, 2020.
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