Network 1, CCO fined by FINRA for Reg BI failures
By 
Jeff Dale2023-09-07T19:27:00
A New Jersey-based broker-dealer and its chief compliance officer agreed to pay approximately $740,000 combined, plus interest, as part of a settlement with the Financial Industry Regulatory Authority (FINRA) addressing alleged Regulation Best Interest (Reg BI) compliance failures.
Network 1 Financial Securities will pay a $200,000 fine, approximately $534,000 in restitution, and be censured, according to a FINRA consent order filed Aug. 31.
The firm’s CCO, Michael Molinaro, will pay a $5,000 fine and be banned for three months from association with any FINRA member in all principal capacities, per the order. The self-regulatory organization noted this is Molinaro’s second such suspension, after a 45-day ban in 2015 for alleged supervision failures.
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