Highlights of Outside Business Activities and Private Securities Transactions

Overview

Supervision rules of the Financial Industry Regulatory Authority (FINRA) impose obligations on a firm's supervisory principals to supervise the outside business activity (OBA) and private securities transactions (PSTs) engaged in by their registered representatives and non-registered associated persons.

Learning Objectives

The purpose of this course is to provide a thorough orientation to the concepts of outside business activity and private securities transactions and the regulatory obligations relating to both of them. OBAs and PSTs have attracted greatly increased regulatory scrutiny in recent years, and the scope of supervisory obligation has expanded concomitantly. It is critical that all personnel at broker-dealers, whether principals, supervisors, registered representatives, or non-registered associated persons, understand these concepts and the obligations created under the relevant rules.

Upon conclusion of this course, you should:

  • have a solid understanding of the nature of the outside business activity
  • have a solid understanding of regulatory obligations relating to outside business activity
  • have a solid understanding of private securities transactions
  • have a solid understanding of when and how you may engage in private securities transactions
  • understand the supervisory obligations arising from OBAs and PSTs
  • understand the difference between private securities transactions and a private offering of securities

Designed For

Registered Representatives

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License or Certification

Regulator

Type