Stay in Compliance with Outside Business Activities Regulations
FINRA Rule 3270 outlines the responsibilities of a broker-dealer’s designated principal in overseeing the outside business activities of the firm’s registered representatives, as well as the responsibilities of registered representatives relative to outside business activities. Carefully following these regulations is important to being in compliance.
An excerpt from one of our manuals discusses registered representative conduct and specifically details Outside Business Activities and Private Securities (“Selling Away”). This section covers:
- Responsibilities of designated principals
- Written notices required of registered representatives
- Restrictions and conditions related to outside business activities
- Action required to meet compliance obligations
Reviewing this manual excerpt can help you be aware of important compliance requirements.