Finra
A registered representative wants to sell limited partnership interests to clients. The partnerships are not offered through their firm. What must they do?
Under FINRA Rule 3280 (Private Securities Transactions), a representative must provide written notice to their employer before participating in securities transactions outside the firm. If compensation is involved, the f
Complete Analysis & Legal Rationale
Under FINRA Rule 3280 (Private Securities Transactions), a representative must provide written notice to their employer before participating in securities transactions outside the firm. If compensation is involved, the firm must approve and supervise the activity.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Primary source referenced in the explanation (FINRA Rule 3280). Verify current text before launch.