The SEC has approved FINRA’s replacement for the long-standing split between outside business activities and private securities transactions. New Rule 3290 is designed to focus member-firm controls on outside activity that is investment-related, rather than require the same regulatory treatment for every paid role or personal venture.[1][2]
The SEC approved the rule on 15 September 2026. FINRA continues to list it among approved rules awaiting an effective date, to be announced in a Regulatory Notice. Existing requirements therefore remain the operating framework during preparation.[1][4]
One rule replaces two overlapping frameworks
Existing structure and approved replacement
| Area | Existing framework | Rule 3290 approach |
|---|---|---|
| Outside business activity | Rule 3270 addresses compensated or potentially compensated outside business. | Focuses on investment-related outside activity and the risks it creates.Source 3Source 1 |
| Private securities transactions | Rule 3280 separately addresses securities transactions outside the regular scope of employment. | Integrates outside securities transactions into the consolidated assessment and supervision framework.Source 3Source 1 |
| Firm response | Different notice and approval structures can overlap. | Notice, risk assessment, approval or limitation, supervision and records are calibrated to the activity.Source 1 |
| Firm discretion | Rules set a minimum regulatory framework. | A member can maintain stricter policies or prohibit activities that exceed its risk tolerance.Source 1 |
Activities within the approved investment-related definition
| Measure | Value | Context |
|---|---|---|
| Financial products | Securities, crypto assets, commodities and derivatives | The scope is broader than traditional securities alone.Source 1 |
| Markets and finance | Currency, banking and real estate | A role can be investment-related even when it is not a conventional brokerage transaction.Source 1 |
| Insurance | Investment-related insurance activity | The firm considers the activity’s relationship to the associated person’s role and customer risk.Source 1 |
| Excluded personal activity | Certain personal real estate and non-securities transactions | The approved rule narrows the federal SRO obligation rather than treating all personal activity identically.Source 1 |
Notice and approval depend on the activity and selling compensation
Who must notify the firm and how it responds
| Activity | Person’s obligation | Firm response |
|---|---|---|
| Outside investment-related activity without a securities transaction | Registered person: prior written notice | Assess customer involvement, conflicts and apparent firm endorsement; consider conditions or prohibition.Source 5 |
| Outside securities transaction without selling compensation | Associated person: prior written notice | Prompt written acknowledgment, with conditions or limits at the firm’s discretion.Source 5 |
| Outside securities transaction for selling compensation | Associated person: prior written notice and approval | If approved, record each transaction and supervise participation as if conducted for the firm.Source 5 |
Selling compensation and customer confusion explain the heavier supervision requirement. A customer may associate an outside investment with the broker-dealer because of the person offering it or the way it is presented. The firm’s assessment therefore needs to connect its approval conditions to oversight it can actually perform.[1]
The approved text excludes activity for the member or an affiliate, immediate-family securities transactions without selling compensation, specified Rule 3210 transactions and personal non-securities investments. It also excludes a main home and up to two secondary homes subject to the stated ownership conditions. These are defined exclusions from Rule 3290; a firm can still impose stricter internal policies.[5][1]
Transition work connects old approvals to the new categories
Firms can map existing disclosures to the investment-related definition and distinguish activities requiring notice from transactions requiring prior approval and full supervision. The implementation plan also needs to carry forward approvals, pending reviews and compliance records under the old framework. FINRA’s Regulatory Notice will set the date and transition arrangements for that change.[1][2][4]
Sources & further reading
- Order approving FINRA Rule 3290 (Outside Activities Requirements) US Securities and Exchange Commission · 15 Sep 2026 · Accessed 16 Oct 2026
- FINRA Rule 3290 rulemaking file US Securities and Exchange Commission · 15 Sep 2026 · Accessed 16 Oct 2026
- Original notice of filing for FINRA Rule 3290 US Securities and Exchange Commission · 29 Jan 2026 · Accessed 16 Oct 2026
- Approved Rule Changes Pending Determination of Effective Date FINRA · Accessed 20 Oct 2026
- Approved Rule 3290 text pending effectiveness FINRA · Accessed 20 Oct 2026