In the uniquely entitled category ‘there’s a first time for everything’, the Financial Industry Regulatory Authority fined a former registered rep $5,000 and issued a six-month suspension, according to thinkadvisor.com. The action was its first disciplinary moved linked to Regulation and Best Interest.

In a pair of knuckle raps, Charles V. Malico not only willfully violated Reg BI’s Care Obligation but FINRA Rule 2010 as well “by recommending a series of transactions in the account of one retail customer that was excessive in light of the customer’s investment profile and therefore was not in that customer’s best interest,” as laid out by FINRA’s order. This occurred from July 2020 through November 2021.

This action represents the regulator’s first Reg BI-related fine, confirmed a FINRA spokesperson. It came on the heels of a review of an enforcement of an arbitration claim.

“Malico frequently recommended that Customer A buy and then sell a security, only to repurchase the same security weeks or even days later,” the settlement states, according to investmmentnews.com.

The previous suitability standard -- governing the conduct of brokers with customers -- was supplanted by Reg Bi.