www.advisorhub.com Open in urlscan Pro
172.67.68.158  Public Scan

Form analysis
2 forms found in the DOM

GET https://www.advisorhub.com/

<form role="search" method="get" class="searchform form-inline" action="https://www.advisorhub.com/">
  <div class="form-group">
    <label class="sr-only screen-reader-text" for="s">Search for:</label>
    <i class="fa fa-search search-icon" aria-hidden="true"></i>
    <input class="form-control default" type="text" name="s" id="s" value="Search Keywords" onclick="if(this.value == 'Search Keywords'){this.value=''}" onblur="if(this.value == ''){this.value='Search Keywords'}">
    <span class="input-group-btn">
      <button class="btn searchGo" type="submit">
        <i class="fa  fa-arrow-right" aria-hidden="true"></i>
        <span class="sr-only"> Search </span>
      </button>
    </span>
  </div>
</form>

<form id="commentform" class="comment-form">
  <iframe title="Comment Form"
    src="https://jetpack.wordpress.com/jetpack-comment/?blogid=165023220&amp;postid=153171&amp;comment_registration=0&amp;require_name_email=1&amp;stc_enabled=1&amp;stb_enabled=1&amp;show_avatars=0&amp;avatar_default=mystery&amp;greeting=Leave+a+Reply&amp;greeting_reply=Leave+a+Reply+to+%25s&amp;color_scheme=light&amp;lang=en_US&amp;jetpack_version=10.7&amp;show_cookie_consent=10&amp;has_cookie_consent=0&amp;token_key=%3Bnormal%3B&amp;sig=0c6aca094dcaf29826282d1de836a3f9bfa6fefb#parent=https%3A%2F%2Fwww.advisorhub.com%2Ffinra-board-member-knocks-regulators-dated-outside-biz-rule%2F%3Futm_source%3DPANTHEON_STRIPPED%26utm_medium%3DPANTHEON_STRIPPED%26utm_campaign%3DPANTHEON_STRIPPED"
    name="jetpack_remote_comment" style="width: 100%; height: 60px; border: 0px;" class="jetpack_remote_comment" id="jetpack_remote_comment" sandbox="allow-same-origin allow-top-navigation allow-scripts allow-forms allow-popups" scrolling="no">
  </iframe>
  <!--[if !IE]><!-->
  <script>
    document.addEventListener('DOMContentLoaded', function() {
      var commentForms = document.getElementsByClassName('jetpack_remote_comment');
      for (var i = 0; i < commentForms.length; i++) {
        commentForms[i].allowTransparency = false;
        commentForms[i].scrolling = 'no';
      }
    });
  </script>
  <!--<![endif]-->
</form>

Text Content

Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS ACCOUNT
Menu
 * News
     
   * * Latest News
         
       * * First Republic to Pay $1.8M to Settle SEC Charges over Revenue
           Sharing Violations
       * * Rockefeller Opens Seattle Office with $5.2-Mln Morgan Stanley Team
       * * Wells Fargo Advisors to Pay $7 Million Over Anti-Money Laundering
           Lapses: SEC
       * * Penny Stock Surges After Fidelity Legend Lynch Reveals Stake
         
       * Close
     * Advisor Moves
         
       * * Rockefeller Opens Seattle Office with $5.2-Mln Morgan Stanley Team
       * * First Republic and UBS Pluck Managers from J.P. Morgan Advisors on
           Both Coasts
       * * Rockefeller Swipes $17-Mln Morgan Stanley Broker Out from Under First
           Republic
       * * Two UBS Teams with $16.5 Million in Combined Revenue Break Away in
           NYC
         
       * Close
     * Enforcement
         
       * * First Republic to Pay $1.8M to Settle SEC Charges over Revenue
           Sharing Violations
       * * Wells Fargo Advisors to Pay $7 Million Over Anti-Money Laundering
           Lapses: SEC
       * * Firms Fire High Risk Brokers as Finra Takes Aim at Rogue Actors
       * * Finra Suspends Ex-Morgan Stanley Broker Who Hyped ‘Exclusive’ Venture
           Capital Investment
         
       * Close
     * Markets
         
       * `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
       * ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
       * ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
       * ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
         
       * Close
     * Opinion
         
       * * SIRIANNI: Morgan Stanley’s Moment
       * * Sirianni’s 2022 Predictions: The Year of The Great Entrepreneur
           Revival
       * * Why Only a Huge Shock Will Deter Risk-Taking Investors
       * * Sirianni: Toxic Culture
         
       * Close
     * Fintech News
         
       * * UBS “Committed” to Finishing Broker Workstation Revamp Despite
           Delays, CFO Says
       * * Wells Fargo Advisors Rolls Out eMoney Planning Tool for Brokers
       * * Fintech Firm Apex Clearing Agrees to Go Public Via SPAC
       * * Merrill Systems Hiccuped on Thursday as Stocks Slid
         
       * Close
     * From the Publisher
         
       * * SIRIANNI: Morgan Stanley’s Moment
         * Sirianni’s 2022 Predictions: The Year of The Great Entrepreneur
           Revival
       * * Tony Sirianni Interviews Ken Cella — Principal, Client Strategies
           Group at Edward Jones
         * Sirianni: Death of the Trainee
       * * Welcome to AdvisorHub RIA
         * From the Publisher: Sirianni’s Predictions for 2021
       * * Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO,
           Arete Wealth
         * Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO
           of Segall Bryant & Hamill
         
       * Close
     
   * Close
 * Deals & Comp
 * Recruiting Wire
 * Breakaway Center
 * Resources
   * * Resources Home
     * Boutique
   * * Fintech Product Directory
     * Fintech Resources
   * * Institute
     * Practice Management Resources
   * * Transition Resources
   * * Events
   * * Culture Survey
   * Close
 * AH TV
 * Podcasts
 * AH Magazine
 * RIA Center
 * Asset Manager Hub

close X
Search for: Search

May 19, 2022


FINRA BOARD MEMBER KNOCKS REGULATOR’S “DATED” OUTSIDE BIZ RULE

by Miriam Rozen
|
News
|
Commonwealth, FINRA, Herold & Lantern Investments, Sanctuary
|
Outside Business Activities, Regulation
|
View Comments
Share This

SUBMIT A TIP

ablokhin |stock.adobe.com

The Financial Industry Regulatory Authority’s rule governing brokers’ outside
business activities is ripe for revision, according to one of the industry self
regulator’s board members.

“The guidance around outside business activities is pretty dated,” said Peggy
Ho, who is also general counsel and chief risk officer for Commonwealth
Financial Network, an independent broker-dealer with more than 2,000 advisors.
“The industry has evolved a lot since that guidance was in place.”

The comments come as a 2018 Finra proposal to revise Rule 3270 governing outside
business activities stalled without board approval, an agency spokesperson
confirmed. The proposed rule, which was issued for public comments that year,
would have narrowed the scope of what qualified as an outside business that
firms must supervise and was “intended to reduce unnecessary burdens while
strengthening investor protections relating to outside activities,” according to
Finra’s website. 

Firm compliance officials have raised concerns about the wide range of
activities, such as rental income from a vacation home, that could require
disclosure and monitoring under the rule. 

“We’re obligated to supervise these OBAs, but I feel like we’re spending a lot
of time on activities that are not high risk,” Ho, who spoke at a panel
broadcast from Finra’s annual conference in Washington, D.C. this week, told the
audience. “As an industry, it’s something that we will need to think about going
forward.”

Asked about Ho’s remarks, the Finra spokesperson said: “FINRA continues to
consider this complex issue.”  

Nathaniel Stankard, senior advisor to the CEO at Finra, similarly said on the
panel that the regulator is still interested in feedback from firms about what
can be improved. 

“I encourage member firms to keep the lines of communication open,” Stankard
said. “We’re still interested in hearing your thoughts and feedback both about
the current rule and then potential changes going forward.”

The initial proposal generated a flurry of mixed responses supporting and
opposing the change as well as suggested tweaks. 

The push for new guidance comes as in-house compliance officials on the panel
bemoaned a sharp rise in outside business activities in the remote work era and
as social media created opportunities for brokers to become influencers for a
range of businesses from their local country club to cryptocurrency.



OBAs have also become harder to track with fewer opportunities for managers and
compliance to observe potential red flags in person, the officials said. 

“One of the great ways in the past of detecting and monitoring outside business
activities was that you knew what’s going on in your space because you heard
things. You knew what kind of car your rep drove,” said Wendy Lanton, chief
compliance officer of Herold & Lantern Investments.



Finra has maintained outside business activities as a key area of focus each
year out of concern that activities could create potential conflicts with
customers. It reiterated that focus in February in its annual examination
priorities letter reminding firms to “consider” if the outside activity “will
interfere with or otherwise compromise the registered person’s responsibilities
to the firm and the firm’s customers.”

Such infractions commonly appear among Finra’s publicized disciplinary actions.
In one example, the regulator suspended an ex-Morgan Stanley broker for 14
months after he allegedly made $360,000 from a day-trading newsletter. The
newsletter, which he did not disclose to his firm, made promises of profit from
day trading and could have conflicted with his role as an advisor at Morgan
Stanley, Finra said.

EX-MORGAN STANLEY BROKER SUSPENDED AFTER MAKING $360K FROM DAY TRADING
NEWSLETTER

Former New Jersey broker had operated an unapproved blog and YouTube channel
touting his stock trading chops and also texted with clients, the regulator
said.

May 18, 2022

In "Most Read"

FINRA SETS YEAR-END DEADLINE FOR MORE FLEXIBLE WFH RULES

The industry’s self regulator recently advanced four related proposals tied to
remote supervision.

May 17, 2022

In "Most Read"

FINRA SIDELINES FORMER TOP-RANKED NEXT GEN BROKER IN PA OVER UNDISCLOSED
FUNDRAISING

An independent Ameriprise broker who ranked as a top up-and-comer in the state
took a CIO position and raised $200,000 for a credit card processing company
without notifying his brokerage firm, Finra said.

Mar 29, 2022

In "Enforcement"

LIKE THIS ARTICLE? LET ADVISORHUB COME TO YOU!  SIGN UP


Share This


No Comments



LEAVE A REPLY CANCEL REPLY



 * About Us
 * Contact Us
 * Advertise
 * Events
 * Careers


 GET OUR NEWSLETTER

Industry focused content and breaking news.

SIGN UP


CONTACT US

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2022 AdvisorHub
 * |Terms of Use
 * |Privacy Policy
 * |Advertise
 * |Careers

 * Facebook
 * Linkedin
 * Twitter

Back to top