Original Coverage: Crypto, collectibles, and lending should count in outside business oversight, NASAA tells Finra

State regulators coalition urge additions to proposed rule change, including activities at unaffiliated investment advisers and stricter recordkeeping. NASAA is urging Finra to significantly expand the scope of its proposed rule governing outside business activities by associated persons at broker-dealer firms. Citing risks of fraud, hidden costs, and past cases of investor harm, NASAA recommended that Finra specifically include activities related to crypto assets, collectibles such as art, wine, and whiskey; and other alternative investments such as real estate, commodities, and private funds. While acknowledging improvements over an earlier version floated in 2018, the letter contends that key elements of the newer proposal could still weaken protections for investors unless revised. the North American Securities Administrators Association expressed several concerns with Finra’s proposed Rule 3290, which would combine Finra’s existing Rules 3270 and 3280.

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