FINRA's New Outside Activities Rule Is Approved

On September 15, 2026, the SEC approved FINRA Rule 3290, which replaces Rules 3270 (outside business activities) and 3280 (private securities transactions) with a single rule. It takes effect only after FINRA issues a regulatory notice announcing an effective date, which has not yet been set.

Points firms should note:

• Scope is narrower. The rule applies to "investment-related" activity, meaning activity pertaining to financial assets such as securities and crypto assets, and related areas including commodities, derivatives, and insurance.
• Firms must now assess whether an outside activity involves a customer of the registered person. The predecessor rules did not require this.
• Activity for an unaffiliated investment adviser carries no per se supervisory obligation under the rule. Firms still should not overlook red flags.
• Form U4 Question 13 may still require disclosure of outside activities that fall outside Rule 3290.

Firms may wish to review their outside activity policies now, and again once FINRA's regulatory notice is issued.

ICS continues to support broker-dealers in aligning supervisory procedures with evolving FINRA requirements.

Read the full client alert.

ICS advises financial institutions navigating regulatory changes of this type. If your firm needs to assess the impact of this development on your compliance program, contact us to discuss.