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Zorluk: OrtaSelf-Regulatory Organizations (SROs) and FINRA

A registered associated person of a member broker-dealer who intends to engage in a compensated outside business activity is required to submit a formal notification and receive prior written approval directly from FINRA before participating in the activity.

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Cevap

False. Under FINRA Rule 3270, an associated person must provide prompt prior written notice to their employing member broker-dealer, not directly to FINRA.
The statement is false. FINRA Rule 3270 dictates that no associated person may be employed by or accept compensation from any business organization other than the member firm as a result of any business activity outside the scope of the relationship with the member firm unless prior written notice has been provided to the member broker-dealer. Direct application to or authorization from FINRA is not required.

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1
Identify the regulatory requirement for outside business activities (OBAs) of registered personnel.
FINRA Rule 3270 governs outside business activities for associated persons of member firms.
Understanding the division of supervisory responsibilities between FINRA and member firms is critical for regulatory compliance.
2
Determine the proper entity to receive notice and the type of requirement.
The rule mandates prior written notice to the employing member broker-dealer.
FINRA delegates routine supervisory oversight of associated persons' outside activities to the employing broker-dealer.
3
Evaluate the statement's claim regarding direct FINRA approval.
FINRA does not require direct filing or prior approval from the regulatory organization itself for standard OBAs.
Direct approval from FINRA is a common misconception; the member firm performs the review and maintains records for regulatory inspection.

Anahtar Kavram

Outside Business Activity (OBA) Notice Requirements
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Konular

Self-Regulatory Organizations (SROs) and FINRA

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