Outside (Business) Activities
Outside Business Activities are old news, right? Wrong.
This is a topic that registrants should revisit each and every year. It’s sometimes redundant to revisit a topic annually, but it’s important to keep your National Registration Database (NRD) records current and up-to-date. Why? Because the regulators and SROs expect that you’re maintaining high standards of fitness and business conduct and demonstrating a commitment to comply with securities laws and there’s always something that could pop up in your life that creates (or could create) a conflict of interest.
Previously known as “Outside Business Activities”, these potential conflicts of interest are known now simply as “Outside Activities” because they can include paid or unpaid interests (see National Instrument 33-109, the Forms and Companion Policy, called Modernizing Registration Information Requirements, Clarifying Outside Activity Reporting & Updating Filing Deadline). While the changes came into effect in June 2022, you had until June 2023 to report all of your outside activities (did you?).
Here are the 5 categories for reportable outside activities:
- Activities with another registered firm
- Activities with an entity that receives compensation from another registered firm for the Registrant’s registrable activity
- Other securities-related activities
- Provision of financial or financial-related services
- Positions of influence
Check out this helpful flow chart which we jazzed up and adapted from the Companion Policy 33-109CP available on the Ontario Securities Commission (OSC) website to see if you have an outside activity that needs reporting on NRD.
Your Firm likely has policies and procedures requiring that all outside activities be disclosed and approved by the appropriate supervisor or Chief Compliance Officer.
Failing to report an outside activity can mean you or the Firm you work for could be subject to a late fee or suspension.
We have great and really fun outside activity training. We think it’s the best continuing education training in the market.