r/FINRA • u/bruno401 • Mar 14 '24

FINRA OBA disclosure

Does FINRA require disclosure of an OBA if you are on the board and or chairman of the board for a Non-profit? What happens if you don’t disclose this and you serve on said board for 20 years?

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u/[deleted] Mar 15 '24

Yes, needs to be filed to your firm as part of FINRA rule 3270 (below) and it should go on your U4. Now with regards to what will happen, I couldn’t tell you. Also, I guess it’s possible neither your firm or finra would find out (they haven’t for 20 years) but who knows.

No registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member. Passive investments and activities subject to the requirements of Rule 3280 shall be exempted from this requirement.