Richard James Jirinec, of Jupiter, Florida, a stockbroker registered with PHX Financial, also known as Phoenix Financial Group is the subject of a customer initiated, investment related FINRA securities arbitration claim seeking $1,180,000 in damages purportedly for the violation of Regulation Best Interest (“Reg. BI”) in connection with the management of a deceased customer’s account. FINRA Arbitration No. 25-02742 (December 18, 2025).
FINRA Public Disclosure also shows that Jirinec was previously subject to a customer initiated, investment related FINRA securities arbitration claim which was settled.
Regulation Best Interest or “Reg BI,” which became effective on June 30, 2020, established a standard of conduct for broker-dealers and associated persons when they recommend securities transactions to retail customers. Rule 15l-1(a)(1) of the Exchange Act, 17 CFR § 240.15l-1(a)(1).
Reg BI’s Best Interest Obligation requires a broker, dealer, or a natural person associated with a broker or dealer, when making a recommendation of any securities transaction to a retail customer, to act in the best interest of that retail customer at the time the recommendation is made, without placing the financial or other interest of the broker, dealer, or associated person over of the interest of the retail customer.
The Best Interest Obligation is satisfied only by compliance with four Component Obligations: (1) Disclosure Obligation, (2) Care Obligation, (3) Conflict of Interest Obligation, and (4) Compliance Obligation.
The Care Obligation requires a broker, dealer, or associated person to exercise reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with a recommendation of a securities transaction to a retail customer.
The Care Obligation also requires a broker, dealer, or associated person to exercise reasonable diligence, care, and skill to have a reasonable basis to believe that their recommendation is in the best interest of the particular retail customer, based on that customer’s investment profile and the potential risks, rewards, and costs associated with the recommendation.
Reg BI also requires that a registered representative establish that it had a reasonable belief that the recommendation was in the best interest of the retail customer, and to consider reasonably available alternatives.
The Guiliano Law Group, P.C.
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