A registered representative is evaluating several activities outside of their regular employment with a member broker-dealer. Under FINRA Rule 3270 regarding Outside Business Activities (OBA), which of the following activities require the representative to provide prior written notice to their firm?
- Working as a paid evening instructor for a local community collegeAnswer
- Providing paid financial consulting services to a private technology startupAnswer
- CVolunteering as an uncompensated weekend event coordinator for a local registered charity
- DManaging a personal investment portfolio by purchasing shares of publicly traded equities
Answer
The activities requiring prior written notification are working as a paid evening instructor at a community college and providing paid financial consulting services to a private startup.
Under FINRA Rule 3270, prior written notification to the member firm is required whenever a registered representative engages in any business activity outside the firm for which they are compensated or expect to be compensated. Both the paid teaching position and the paid private startup consulting role involve outside compensation and therefore require prior written notice.
Step-by-Step Solution
Key Concept
Outside Business Activities (OBA) Prior Written Notification Requirements