Effective December 15, 2010, FINRA Rule 3270 will require registered representatives to provide a prior written notice to broker-dealers of an outside business activity (OBA).
Review and approval by member firms is required in order to determine if the activity is appropriate. Based on the review, this may lead to limiting or prohibiting an activity. Written records to document the review process will be filed accordingly.
For registered persons who are actively engaged in an outside business activity prior to December 15, 2010, firms have until June 15, 2011, to review such pre-existing activities under the standards set forth in FINRA Rule 3270.
Quest CE Has the Solution to Meet the New Rule
Quest’s annual tracking system, built directly into their proprietary Learning Management System, Renaissance, will allow for representatives to add or edit OBA’s. The easy and intuitive online based solution is available constantly around the clock. Representatives are confidently able to manage their OBA’s throughout the year.
Sophisticatedly designed, Renaissance can send automated e-mails to program administrators every time a representative adds or edits a new OBA. Creating an instant audit trail, administrators can confirm or deny new activities immediately. Subsequently, representatives will receive an e-mail if an item was approved, rejected or the administrator added or updated comments.
In order to comply with the new FINRA Rule 3270, individual rep’s Outside Business Activities will require approval by the program administrator prior to placing the new activity. The new pending activity will send an automatic alert to the administrator and upon approval Renaissance will notify the rep of the status of the new activity. This industry leading solution allows for a less interruptive OBA system while also ensuring compliance to the new rule.
Reporting can be effortlessly exported into an easy to read Excel spreadsheet. Quest CE ensures their OBA tracking system meets the compliance requirements of FINRA’s rules and regulations for Rule 3270.
With a client retention rate of 95.17% and a growth rate of over 400% since January 1, 2005, more and more people are discovering why Quest CE is the Next Generation of Compliance Training Solutions.
Quest CE (questce.com) was founded in 1986 and today serves more than 200 leading insurance carriers, broker/dealers, banks, and other financial institutions. Quest is a privately held company which allows us to quickly meet the ever-changing needs of our clients. Quest’s commitment is to provide advanced custom solutions at cost effective rates while providing a level of service that greatly surpasses that of our competitors. Quest provides a single source solution for organizations' training and compliance needs, saving you both time and money.