Khung pháp lýCâu 372 / 398

A registered representative wants to help set up private investments in a startup for several clients, outside of and without notice to her firm, receiving selling compensation. This activity is best described as:

a.A permissible outside business activity
b.An acceptable gift under the gift rule
c.A private securities transaction ('selling away') requiring prior written notice and firm approval
d.A standard brokerage transaction requiring no disclosure

Giải thích

Effecting securities transactions outside the regular course of one's employment for compensation is a private securities transaction, commonly called 'selling away.' FINRA Rule 3280 requires prior written notice to, and written approval from, the member firm; the firm must then supervise and record the transactions. Doing so without notice is a violation.

Trích dẫn luật: FINRA Rules

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