FINRA Notice and Summary:
FINRA seeks comment on a proposed new rule to streamline and reduce unnecessary burdens regarding existing requirements addressing the outside activities of member firms’ associated persons, including registered persons (the Proposal). The Proposal is the result of FINRA’s retrospective review of FINRA’s rules governing outside business activities (OBAs) and private securities transactions (PSTs), FINRA Rule 3270 (Outside Business Activities of Registered Persons) and FINRA Rule 3280 (Private Securities Transactions of an Associated Person), respectively. The Proposal would replace two rules—Rules 3270 and 3280—with one rule and is intended to enhance efficiency without compromising protections for investors and members relating to outside activities.