Outside Business Activities & Private Securities Transactions

Track and manage your representatives' outside activities and transactions.

Distinguishing Disclosure Types

Although similar, outside business activities (OBAs) and private securities transactions (PSTs) are different entities that need to be properly disclosed. If reported incorrectly, firms and individuals run the risk of being sanctioned for falling short of the requirements listed in FINRA Rules 3270 and 3280. To help firms distinguish between the two types of activity when reviewing submitted disclosures, we built our system to include checks and balances that will significantly reduce the risk of OBAs and PSTs being disclosed incorrectly.

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Outside Business Activities

Each year, hundreds of firms and individuals find themselves being sanctioned by FINRA for improperly monitoring and disclosing their outside business activities. Never fear, we have the tools you need to help keep your firm off FINRA’s radar. With our compliance management system, representatives are prompted to fill out an online form which requires them to enter information such as, organization name,┬áposition held, hours committed, start/end date and more.┬áPrior to submitting the disclosure for approval, users are required to digitally attest to their activity. Once submitted, the disclosure is flagged in the queue allowing administrators to quickly review and approve, reject or request more information, if needed. In addition, all disclosed information is tracked, stored and managed from one centralized location.

 

Private Securities Transactions

Often times when firms or individuals are sanctioned by FINRA for issues involving private security transactions, it’s because the information was incorrectly submitted as an outside business activity rather than a securities transaction. To help firms mitigate the risk of approving improperly disclosed activities, we created a system of checks and balances that prompts the final approver to review three questions that are designed to help determine whether a submitted outside business activity should actually be disclosed as a securities transaction, or a passive investment.

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