Examkin

Soru

Zorluk: OrtaGifts, Gratuities, Political Contributions, and Outside Business Activities

A registered representative at a broker-dealer is offered a compensated part-time position teaching a weekend evening course at a local university. She will not be soliciting securities transactions or acting on behalf of her member firm during this employment. Under FINRA rules, what action must the representative take prior to engaging in this outside activity?

  1. Provide prior written notice to her employing member firmCevap
  2. B
    Request and receive formal written permission from FINRA
  3. C
    Decline the offer, as outside compensated employment triggers an automatic two-year ban from municipal securities business
  4. D
    File a formal notification with the Securities and Exchange Commission (SEC) after receiving her first paycheck

Cevap

Provide prior written notice to her employing member firm
Under FINRA Rule 3270, no registered person may be employed by, or accept compensation from, any other person as a result of any business activity outside the scope of the relationship with their member firm unless they have provided prior written notice to the member firm.

Adım Adım Çözüm

1
Identify the regulatory rule governing compensated outside employment for registered representatives.
FINRA Rule 3270 (Outside Business Activities) applies.
The scenario involves a registered person engaging in business activities outside the scope of the broker-dealer relationship for compensation.
2
Determine the required regulatory compliance procedure.
The representative must provide prompt prior written notification to her employing member firm.
The rule mandates prior written notice to the firm so the firm can evaluate potential conflicts of interest and determine if the activity should be restricted or prohibited.

Anahtar Kavram

FINRA Rule 3270 - Outside Business Activities (OBA)
Bu soruyu puanla

Konular

Gifts, Gratuities, Political Contributions, and Outside Business Activities