Regulatory FrameworkQuestion 371 of 398
A registered representative accepts a part-time job as a bookkeeper for a friend's restaurant on weekends, receiving compensation. Under FINRA rules on outside business activities, the representative must:
a.Do nothing, because the activity is unrelated to securities
b.Provide prior written notice to their employing member firm
c.Obtain approval from the SEC before starting
d.Register the restaurant as a branch office
Explanation
FINRA Rule 3270 requires a registered person to provide prior written notice to their member firm before engaging in any outside business activity for compensation, even if unrelated to securities. The firm can then evaluate the activity and impose conditions or prohibit it if necessary.
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