A registered representative associated with a broker-dealer plans to accept a weekend position as a paid accountant for a local private business. Under FINRA rules governing outside business activities (OBAs), which of the following actions is required before the representative begins this compensated employment?
- Provide prior written notice to the employing member firmCevap
- BObtain prior written authorization directly from the Securities and Exchange Commission (SEC)
- CSubmit a public disclosure filing to FINRA and await formal regulatory approval
- DEnsure that political contributions to the local business do not exceed the $250 de minimis limit
Cevap
The registered representative must provide prior written notice to the employing member firm.
Under FINRA Rule 3270, any registered person proposing to engage in compensated business activities outside the scope of their relationship with their member firm must provide prior written notice to the employing broker-dealer. This notice allows the firm to assess whether the activity presents conflicts of interest or requires special supervision.
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Outside Business Activities (OBA) Notification Requirements
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