If it looks like a penalty box
In the category titled “there’s a first time for everything,” the Financial Industry Regulatory Authority fined a former registered representative $5,000 and issued a six-month suspension, according to thinkadvisor.com. The action was his first regulatory and best interest disciplinary action.
In a pair of punches, Charles V. Malico not only willfully violated Reg BI’s duty of care, but also FINRA’s 2010 rule “by recommending a series of transactions in the account of a retail client who was excessive in light of the client’s investment profile and therefore was not in that client’s best interest,” as the FINRA order states. This occurred from July 2020 to November 2021.
The action represents the regulator’s first Reg BI-related fine, a FINRA spokesperson confirmed. It came on the heels of a review of the enforcement of a request for arbitration.
“Malico frequently recommended that Client A buy and then sell a security, only to repurchase the same security weeks or even days later,” the settlement says, according to investmentnews.com.
The previous fitness standard – governing the conduct of brokers with clients – has been superseded by Reg Bi.
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