SEC Approves FINRA Rule 3290, Streamlining Outside Activities Requirements for Associated Persons

Key Takeaways

• The SEC approved FINRA's new Rule 3290 on September 15, 2026.
• It replaces Rules 3270 (Outside Business Activities) and 3280 (Private Securities Transactions) with a single consolidated rule and eliminates reporting of non-investment-related activities.
• The effective date has not been announced, so compliance teams should begin planning policy and procedure updates now.

Deep Dive

The SEC approved FINRA's new Rule 3290 on September 15, 2026. It replaces Rules 3270 (Outside Business Activities) and 3280 (Private Securities Transactions) with a single consolidated rule and eliminates reporting of non-investment-related activities. The effective date has not been announced, so compliance teams should begin planning policy and procedure updates now.

Rule 3290 is part of the FINRA Forward rule modernization initiative. It consolidates two longstanding rules covering outside business activities of registered persons and private securities transactions of associated persons into one framework. Its most significant stated change is the elimination of reporting for non-investment-related outside activities. FINRA says the rule will improve efficiency while preserving protections for investors and members. Firms should expect a lighter reporting burden, but they will need to rework existing supervisory frameworks to reflect the new structure.

The press release does not detail the rule's operative provisions, such as the scope of "investment-related" activities, any notice or approval standards, or recordkeeping expectations. The effective date is also unannounced. FINRA will publish a regulatory notice with the effective date, and that notice will likely include implementation detail. Compliance teams should read the full rule text and the SEC approval order, because the practical impact depends on how investment-related activity is defined and how the former Rule 3280 "selling away" concepts carry forward.

Several other items carry near-term deadlines:
- Comments on proposed amendments to the Codes of Arbitration Procedure are due to the SEC by September 18.
- Comments on Regulatory Notice 26-15 (best execution guidance modernization) are due September 25.
- Comments on the proposed Rule 4522 amendments (alternative investment position statements and reconciliation) are due to the SEC by September 30.
- Comments on proposed rule changes to help firms address suspected fraud and financial exploitation are also due to the SEC by September 30.
- The FINRA Trade Reporting Facilities (TRFs) extend their operating hours starting December 6. They will run from 9 p.m. ET Sunday through 8 p.m. ET Friday, with a one-hour technical pause from 8 to 9 p.m. ET, Monday through Thursday, excluding holidays. Trade reporting teams should assess staffing and system readiness.

Recommended Actions:
- Inventory current outside activity disclosures, approvals, and surveillance processes tied to Rules 3270 and 3280.
- Perform a gap analysis against Rule 3290 once the full text and effective date are available.
- Plan updates to written supervisory procedures, attestation and questionnaire templates, and employee training.
- Review the pending comment opportunities for potential firm input.
- Keep a documented process for assessing conflicts of interest and private securities activity, whatever the reporting changes.

Reduced reporting may lower operational burden, but it could also create blind spots. Selling away, conflicts of interest, and undisclosed investment-related activity remain key risks, and firms stay responsible for reasonable supervision. Firms that scale back monitoring too aggressively, or misclassify activities as non-investment-related, could face examination and enforcement exposure. The changes to the TRF hours and the fraud and exploitation proposals also carry operational and customer-protection implications.

Source: Financial Industry Regulatory Authority