Tr?id=566623520170033&ev=PageView&noscript=1

FINRA Advances Overhaul of Outside Business Activity Rules to the SEC

Posted on January 28th, 2026 at 2:22 PM
FINRA Advances Overhaul of Outside Business Activity Rules to the SEC

From the desk of Jim Eccleston at Eccleston Law

FINRA formally has advanced its proposed overhaul of outside business activity (OBA) regulations to the Securities and Exchange Commission. According to AdvisorHub, FINRA also issued a notice confirming the SEC filing, which triggers a 90-day public comment period before the SEC decides whether to approve the rule.

The proposal would replace existing Rules 3270 and 3280 with a single, consolidated Rule 3290. As reported by AdvisorHub, FINRA designed the change to streamline regulatory oversight and reduce compliance obligations tied to low-risk, non-investment-related activities. Under the proposal, brokers no longer would need to report or seek firm approval for activities such as refereeing sports, driving for a car service, or bartending on weekends.

The rule also would permit brokers to engage in certain activities, including securities transactions, without firm approval when no compensation is involved. FINRA also would exclude personal real estate transactions, such as buying, selling, or renting a home, from reporting requirements, as reported by AdvisorHub.

FINRA stated that the revised framework would allow firms to concentrate supervisory resources on higher-risk conflicts. Those risks may include selling away and the promotion of products such as crypto assets, fixed annuities, commodities, or private placements. According to AdvisorHub, this effort follows earlier attempts by FINRA to modernize OBA regulation. In 2018, FINRA proposed narrowing the definition of outside business activities and easing supervisory and recordkeeping requirements related to brokers’ unaffiliated registered investment advisers.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

1776963542 Law
April 23, 2026
Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs

Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants.

1776796402 Law
April 21, 2026
DOL Proposal on Alternative Assets in 401(k)s Faces Cautious Reception

The U.S.

1776708210 Law
April 20, 2026
FINRA Suspends Former Cape Securities CCO for Supervision Failures Tied to GWG L Bonds and Complex ETPs

The Financial Industry Regulatory Authority (FINRA) recently suspended and fined Lester Joel Hochler, the former Chief Compliance Officer of Cape Securities Inc., for failing to reasonably supervise recommendations of speculative debt securities and complex exchange-traded products to retail customers.