WASHINGTON — A former J.P. Morgan broker has been barred from the industry after municipal securities representative allegedly cheated on her Series 52 municipal securities representative exam.
The Financial Industry Regulatory Authority reached a settlement with Qianqi Rao Monday, according to FINRA documents. Rao agreed to be barred from the industry without either admitting or denying FINRA's findings that she violated FINRA Rule 2010 by using her smartphone to look up answers to the test she was in the process of taking.
Rule 2010 is FINRA's ethical conduct rule, serving much the same purpose as the Municipal Securities Rulemaking Board's Rule G-17 on fair dealing. Rule 2010 requires FINRA-registered persons to conduct themselves "with high standards of commercial honor" and "maintain just and equitable principles of trade."
On April 23, 2018, Rao took the Series 52 Exam — an MSRB municipal securities representative test — and agreed that she would read and abide by the FINRA Test Center Rules of Conduct. The rules prohibit using phones, notes and study materials during the exam or restroom breaks.The rules also state that all personal items be put in a locker and not accessed during the exam.
“During the test session, Rao took an unscheduled break,” FINRA found. “Rao accessed her cell phone from her locker, conducted an internet search of material related to exam topics and skimmed the search returns hit list.”
Rao also allegedly accessed and reviewed a printed Series 52 study guide, which she stored in the restroom before the exam started.
In April 2018, Rao became registered as a municipal securities representative through JPMorgan. In July 2018, J.P. Morgan fired Rao.
Rao’s lawyer, Ghillaine Reid of McGuire Woods, did not respond immediately for comment.
