Question

Kellie is a Dealing Representative who works for an exempt market dealer (EMD). Kellie has decided to accept a volunteer role as director for a local charitable organization, for which there will be no compensation. When must Kellie disclose this outside business activity (OBA) to her EMD?

Answer 1

Kellie must disclose her volunteer role as a director for a charitable organization to her EMD prior to starting the role. This is to maintain regulatory compliance and prevent conflicts of interest.

Step-by-step explanation:

Kellie must disclose her new volunteer role as director for a local charitable organization to her exempt market dealer (EMD) prior to engaging in this outside business activity (OBA). Regulation requires that dealing representatives like Kellie inform their EMD of any OBA to prevent conflicts of interest and to ensure that all regulatory requirements, including oversight and record-keeping, are adhered to. It is a precautionary measure to maintain transparency and integrity in financial services.