FINRA Broker-Dealer template Procedures: Private Securities Transactions of Associated Persons (FINRA Rule 3280)

The FINRA Broker-Dealer template Procedures: Private Securities Transactions of Associated Persons (FINRA Rule 3280) under USA law is a legal template that outlines the procedures and guidelines regarding private securities transactions conducted by associated persons of a broker-dealer firm.

This template is designed to ensure compliance with the regulations set forth by the Financial Industry Regulatory Authority (FINRA) in Rule 3280. It provides a standardized framework that broker-dealer firms can adopt to establish policies and practices that govern private securities transactions conducted by their associated persons.

Private securities transactions refer to any buying, selling, or solicitation of securities outside the scope of an associated person's employment with the broker-dealer firm. These transactions can include investments in private placements, hedge funds, limited partnerships, or other non-publicly traded securities.

The legal template includes provisions that require associated persons to notify and seek approval from their employing broker-dealer firm prior to engaging in any private securities transaction. It outlines the information that should be provided to the firm, such as the nature of the transaction, parties involved, and potential conflicts of interest.

Additionally, it sets forth record-keeping requirements, requiring associated persons to maintain detailed records of all private securities transactions, including trade confirmations, account statements, and correspondence related to such transactions.

Furthermore, the template may address the firm's responsibility to review and approve or disapprove of these private securities transactions, ensuring that they are in line with the associated person's obligations and do not violate any regulatory requirements. It may also provide guidance on addressing potential conflicts of interest, client disclosures, and other compliance considerations.

By implementing this template, broker-dealer firms can establish a comprehensive framework that promotes transparency, accountability, and compliance with FINRA rules and regulations, ultimately protecting the interests of both the firm and its clients.