Regulatory & Compliance | 10.29.26

FINRA Recordkeeping Rule for Outside RIA Activity To Take Effect Next Fall

by: Alec Rich

The Financial Industry Regulatory Authority’s (FINRA) new Rule 3290 governing broker-dealer oversight of advisors’ outside business activities will take effect Oct. 25, 2027, replacing Rules 3270 and 3280 with a consolidated framework focused on investment-related activities and securities transactions. Broker-dealer representatives must still provide written notice of outside registered investment advisor (RIA) activities, allowing firms to assess, restrict or prohibit them. The rule eliminates reporting requirements for lower-risk activities, such as bartending or refereeing, and activities performed for broker-dealer affiliates. Private securities transactions remain subject to written notice, potential firm approval conditions and recordkeeping requirements, particularly when compensation is involved.

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