FINRA Proposes Rule for Private Securities Transactions of Associated Persons

FINRA proposed to adopt NASD Rule 3040 ("Private Securities Transactions of an Associated Person") as FINRA Rule 3280 in the consolidated FINRA Rulebook "without any substantive changes." "As with NASD Rule 3040, proposed FINRA Rule 3280 states that prior to participating in any private securities transaction, any person associated with a FINRA member must provide written notice to the member with which he or she is associated." FINRA proposed updating cross references to its rules.

See:Text of Proposed FINRA Rule Change; Notice of Proposed FINRA Rule Change.