Question

Financial Industry Regulatory Authority (FINRA) rules regarding outside business activity (OBA) require that?

1) Prior written notice to the employing firm be provided.
2) Approval is gotten from FINRA or another self-regulatory organization (SRO).
3) All activities be coordinated between both employers.
4) All passive investments be reported under the rule.

Answer 1

FINRA rules regarding outside business activity (OBA) require prior written notice, approval from FINRA or another SRO, coordination between employers, and reporting of passive investments.

Step-by-step explanation:

The Financial Industry Regulatory Authority (FINRA) rules regarding outside business activity (OBA) require the following:

1. Prior written notice to the employing firm: Individuals engaging in outside business activities must provide written notice to their employer before starting.
2. Approval from FINRA or another self-regulatory organization (SRO): In some cases, individuals may need approval from FINRA or another SRO, depending on the nature of their outside activities.
3. Coordination between both employers: If an individual has multiple employers, they must ensure that their activities are coordinated between both employers.
4. Reporting all passive investments: All passive investments must be reported under the rules.