Outside Business Activities are on the regulatory radar. 2021 saw FINRA issue several fines and sanctions to brokers for activities ranging from doing unreported notary work to setting up firms to fund small businesses. FINRA’s recently released 2022 Report on Examination & Risk Monitoring includes adjustments to rules for reporting and supervision of outside business activity.
The report found several common exam deficiencies, including:
- Incorrect Interpretation of Compensation
- Inadequate Consideration of Need to Supervise
- No Documentation
- No or Insufficient Notice and Notice Reviews
- Inadequate Controls
- No Review and Recordkeeping of Digital Asset Activities
Your firm likely has policies and procedures in place requiring employees to disclose their outside business interests. But do you really understand the nuances of Outside Business Activities and what they mean for your compliance program?
Join MCO and Elin Cherry from Elinphant for the on-demand webinar Understanding OBAs: Compliance Insight on Outside Business Activities. Elin hosts an interactive discussion where we’ll answer questions that will help you understand the latest FINRA guidance and deepen your knowledge of Outside Business Activities, including:
- It’s one thing if one of my associates has a weekend job at a well-known retailer. But what about the senior employee with deep professional ties that has a side hustle consulting or is on the board of an industry organization?
- I’m concerned that my employees are using the remote office as an opportunity to do other work. As a compliance officer, what should I do?
- FINRA has cited inadequate controls to confirm adherence to limitations placed on OBAs or PSTs as an exam deficiency. How do I know if my firm’s controls are enough?
Automated management of Outside Business Activities
MCO's Outside Business Activities solution allows firms to easily manage the capture of employee outside business activities and efficiently identify, monitor and disposition potential conflicts of interest.
Want to learn more? Let us know and one of our experts will be in touch.