Regulatory & Compliance | 09.16.26
SEC Approves FINRA's Outside Business Activity Plan
by: Melanie Waddell
The U.S. Securities and Exchange Commission approved Financial Industry Regulatory Authority's (FINRA) revised outside activities plan, allowing FINRA to adopt Rule 3290 and eliminate existing Rules 3270 and 3280. The new rule narrows reporting requirements to investment-related activities while retaining notice, assessment and approval requirements for covered activities, and creates exclusions for lower-risk conduct such as affiliate activities, personal real estate and non-securities investments. It also replaces supervisory and recordkeeping requirements for unaffiliated registered investment advisors activity with a less burdensome notice and assessment process. Industry attorneys said the changes will significantly reduce compliance burdens for broker-dealers and provide relief for dually registered advisors.
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