I've never heard of that policy either.

I would have asked the FSDO inspector which section of the inspector's
handbook covers that policy. It would seem it should be covered by
FAR too.

http://www.faa.gov/library/manuals/e...spectors/8300/
Airworthiness Inspector's Handbook, Order 8300.10

http://www.faa.gov/library/manuals/e...spectors/8700/
General Aviation Operations Inspector's Handbook, Order 8700.1

http://www.faa.gov/about/office_org/...e/fsdo_pilots/
More FAA information