FINRA requires a registered representative to notify his broker-dealer if he is involved in which of the following activities?

FINRA requires a registered representative to notify his broker-dealer if he is involved in which of the following activities?

• A. Buying securities on margin
• B. Driving for a ridesharing company on weekends
• C. Volunteering for a nonprofit organization
• D. Participating in a corporate merger

Answer: (B)

A registered representative is required to notify their broker-dealer if they are involved in activities that could potentially present a conflict of interest or impact their ability to perform their professional duties. Driving for a ridesharing company on weekends is considered outside business activity. FINRA rules stipulate that registered individuals must disclose any outside business activities that could influence their professional obligations or create a situation where there may be a conflict with their role as a representative. In contrast, activities such as buying securities on margin are a normal part of investment practices and do not require special notification to the broker-dealer. Volunteering for a nonprofit organization typically does not fall under activities that need to be reported, as they usually are not seen as conflicts of interest regarding financial transactions or professional responsibilities. Participation in a corporate merger, while perhaps significant, is generally part of the professional landscape and does not necessarily require disclosure unless the representative's role directly impacts their compliance obligations. Therefore, the need for notification arises specifically for outside business activities like driving for a ridesharing company.

A registered representative is required to notify their broker-dealer if they are involved in activities that could potentially present a conflict of interest or impact their ability to perform their professional duties. Driving for a ridesharing company on weekends is considered outside business activity. FINRA rules stipulate that registered individuals must disclose any outside business activities that could influence their professional obligations or create a situation where there may be a conflict with their role as a representative.

In contrast, activities such as buying securities on margin are a normal part of investment practices and do not require special notification to the broker-dealer. Volunteering for a nonprofit organization typically does not fall under activities that need to be reported, as they usually are not seen as conflicts of interest regarding financial transactions or professional responsibilities. Participation in a corporate merger, while perhaps significant, is generally part of the professional landscape and does not necessarily require disclosure unless the representative's role directly impacts their compliance obligations.

Therefore, the need for notification arises specifically for outside business activities like driving for a ridesharing company.