Finra has sanctioned a former general securities representative affiliated with JPMorgan Securities over his participation a scheme to cheat at the CFP exam.
According to the regulator’s AWC letter published Tuesday, Basu, who has been in the securities industry since 2013, engaged in unethical practices while taking the Certified Financial Planner exam in March 2021.
The AWC document detailed how Basu crossed ethical lines by participating in a scheme to leak information to would-be takers of the CFP exam.
“On three occasions prior to taking the exam, he solicited and received information regarding exam content from individuals on a group messaging platform who had already taken the exam earlier in March,” Finra said. “In addition, after taking and passing the exam, Basu shared exam content with other individuals on the platform who planned to take the exam later in March.”
Basu’s violations also landed him on a list of nine individuals whom the CFP Board publicly sanctioned in April.
According to Finra, Basu’s actions contravened the CFP Board's Pathway Agreement, an essential part of the registration process for the CFP exam, stipulating that candidates must adhere to strict rules against exam misconduct. These rules prohibit candidates looking to become CFPs from communicating about the exam with others, disclosing any exam content or questions, and attempting to give or receive assistance before, during, or after the exam.
His decision to solicit and share exam information was also a breach of Rule 2010, Finra said, which mandates all member firms and their associated persons uphold high standards of commercial honor and equitable principles of trade in their business conduct.
In March 2023, the CFP Board's disciplinary and ethics commission ruled that Basu's actions constituted clear exam misconduct. For that, the DEC handed down a five-year prohibition barring him from applying for or obtaining the CFP mark, and declared his results for the March 2021 exam null and void. Basu asked for a reversal on that decision, but his request was denied by the CFP Board’s appeals commission.
Finra's enforcement actions against Basu include a one-month suspension from associating with any Finra member in all capacities and a $5,000 fine. The suspension prevents Basu from any involvement with Finra member firms during this period.
Earlier this month, Finra issued a $5,000 fine and suspension against Joseph A. Occhipinti, a former representative associated with Goldman Sachs, for his participation in the same CFP Exam cheating ring in March 2021.
The regulator meted out harsher sanctions against two former financial advisors, one from Equitable Advisors and one from Barclays, in 2022. In that case, it found the two errant ex-advisors had separately cheated on remote exams to be qualified as securities professionals.
“Test cheaters are on notice: regardless of the testing environment, Finra remains vigilant in our efforts to detect cheating and will vigorously pursue disciplinary action – including permanent bars – against any individual who cheats on qualification examinations,” Jessica Hopper, Finra EVP and head of enforcement at the time, said in a statement.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
