FINRA Rule 3270 requires that registered representatives and other supervised persons provide prior written notice of any outside business activity (OBA) to the member firm. Member firms are required to review the activity and determine if it is allowed or prohibited in accordance with FINRA Rule 3270. The member firm may also set certain limits and restrictions related to the activity. The review and decision process must be appropriately documented and filed.
FINRA continues to make the supervision of Outside Business Activities a top exam priority. To ensure compliance, member firms must identify technology and processes that enable the efficient management of the OBA request submission, supervisory review, approval / response, status tracking, registered representative attestation, documentation, and reporting processes.