Outside Business Activities and Private Securities Transactions
Chapters in this video
- 0:00 Sponsor intro and Riley the Representative
- 0:25 Outside business activities and prior written notice
- 2:56 Private securities transactions and the compensation fork
- 5:12 Selling away and why outcome does not matter
- 7:17 OBAs vs. private securities transactions cheat sheet
- 7:54 Rapid-fire exam recap
What this video covers
- Why prior written notice is mandatory before an outside business activity (OBA) begins, and why notifying after starting is itself a violation
- What counts as an outside business activity versus a private securities transaction, and why the presence of securities is the dividing line
- The firm's three options after receiving notice of an OBA: approval, restriction, or prohibition
- The compensation distinction in private securities transactions, and when the firm must approve and supervise versus merely acknowledge
- What selling away is, why it violates FINRA rules regardless of investment outcome, and why participation without compensation still counts
- The severe consequences for selling away: fines, suspension, or permanent industry bar
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete SIE course in the app is free too, including adaptive practice questions and spaced-repetition flashcards.