Regulatory Alerts2025-03-14 | Regulatory Notice 25-05Added · Updated
FINRA Proposal to Reduce Unnecessary Burdens and Simplify Requirements Regarding Associated Persons’ Outside Activities
FINRA proposes a new rule to consolidate and streamline existing Rules 3270 and 3280, which govern associated persons' outside business activities and private securities transactions. The proposal narrows the scope of reportable activities to "investment-related activities," eliminating reporting for non-investment-related activities, and maintains prior written notice requirements for registered and associated persons. Member firms must assess these activities based on specific criteria, with varying obligations for acknowledgment, conditions, or approval depending on the nature of the activity and whether it involves selling compensation. The rule also introduces several exclusions and clarifies obligations for activities like portfolio management and for individuals associated with multiple members.