01.20.26

FINRA Sends Revised Outside Business Activity Rule to SEC

by: Melanie Waddell

The Financial Industry Regulatory Authority (FINRA) has submitted its revised outside activities plan to the U.S. Securities and Exchange Commission (SEC) for approval, proposing FINRA Rule 3290 to replace Rules 3270 and 3280. The plan narrows the types of activities subject to outside business activity requirements and clarifies prior ambiguities. Notably, outside investment advisor activities without selling compensation would only need disclosure, not supervision. Activities at affiliates, including investment advisor affiliates, as well as certain family-related securities activities and personal real estate sales without compensation, would also be excluded from the rules.

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