FINRA Tidies Up Rules for Brokers' Outside Gigs
Published Date: 9/18/2026
Notice
Summary
FINRA is rolling out a new rule, FINRA Rule 3290, to replace old rules about outside work and private securities deals for financial pros. This change affects anyone working in finance who has side gigs or private investments, making reporting clearer and simpler. The new rule kicks in soon, helping firms keep better tabs on outside activities without extra costs.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Broader Definition Includes Crypto and More
Proposed FINRA Rule 3290 defines "investment-related activity" to include financial assets such as securities, crypto assets, commodities, derivatives, currency, banking, real estate, and insurance. That means associated persons engaging in these types of activities may now have reporting and notice obligations under Rule 3290.
RIA Work No Longer Triggers Firm Supervision
FINRA Rule 3290 treats an associated person's activity at an unaffiliated registered investment adviser (RIA) as an "outside activity," not as an outside securities transaction. As a result, member firms are not required to supervise and maintain records for those unaffiliated RIA activities in the way they were under prior guidance.
Selling-Compensation Transactions Require Approval
FINRA Rule 3290 requires an associated person who intends to participate in an outside securities transaction for selling compensation to provide prior written notice and to obtain prior written approval from the member; if approved, the member must record the transaction on its books and supervise the person's participation as if the transaction were executed on behalf of the member.
Fewer Outside Work Notices Required
The SEC approved FINRA Rule 3290 on September 15, 2026. The rule narrows what registered financial professionals must report: they now must report only "outside investment-related activities" instead of all outside business activities, so routine non-financial side jobs (for example, bartending or refereeing) are not subject to FINRA notice and assessment.
Portfolio Committee Work Treated as Outside Activity
Under FINRA Rule 3290, acting as a portfolio manager or investment committee member for certain investment entities (like mutual funds, ETFs, REITs, business development companies, and tax-exempt entities) is treated as an "outside activity," not an outside securities transaction. But buying or selling those entities' shares remains an outside securities transaction and is subject to the applicable notice and assessment rules.
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