Outside Business Activities
FINRA announced earlier this year a proposed rule change to adopt FINRA Rule 3290 (SR-FINRA-2026-001), which would replace existing FINRA Rules 3270 and 3280. Those rules currently address Outside Business Activities of Registered Persons and Private Securities Transactions of an Associated Person, respectively. The proposed rule would focus on outside activities that are investment-related and present higher risk, rather than all activities in which associated persons may be involved.
Like existing Rules 3270 and 3280, the new rule would continue to require prior written notice before an associated person initiates any outside investment-related activity. Member firms would also be required to assess the activity for potential conflicts of interest, risk, and regulatory exposure.
FINRA has extended the time for SEC action on the proposed rule to October 1, 2026. Accordingly, the implementation date remains pending SEC approval.
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