AICompliance360™: Revolutionizing Outside Business Activity Tracking
In today’s fast-paced regulatory environment, broker-dealers must remain vigilant in monitoring outside business activities (OBAs) to ensure compliance with FINRA rules and protect the integrity of their operations. The consequences of failing to properly manage OBAs can be severe, as highlighted in the July 12, 2024, FINRA action where a firm was fined $60,000 for its failure to establish and enforce a supervisory system for OBAs. This case shows the critical need for firms to have effective tools in place for tracking and managing OBAs.
GiGCXOs offers a cutting-edge solution with AICompliance360™, a powerful platform that monitors and tracks OBAs through a centralized dashboard, ensuring compliance without the hassle of paper forms and outdated PDF submissions.
Why OBA Tracking is Crucial
The July 2024 FINRA case serves as a stark reminder of the risks firms face when they don’t have a robust system in place for managing OBAs. In this case, three registered representatives continued to co-own and operate an outside business despite being instructed to terminate their involvement. The firm failed to enforce its policies, which required representatives to disclose OBAs in writing. As a result, the firm was unaware of the extent of the OBA’s operations, which generated approximately $33 million in sales over two years. This non-compliance led to significant sanctions for both the firm and the representatives involved.
GiGCXOs AICompliance360™: Simplifying OBA Management
At GiGCXOs, we recognize that manual OBA tracking systems can be cumbersome and prone to errors, putting firms at risk of non-compliance. AICompliance360™ is designed to eliminate these risks by streamlining OBA management in a seamless, electronic format. Here’s how it works:
Centralized Dashboard: Firms can monitor all outside business activities in one centralized location, making it easy to track and review OBA submissions in real-time.
Employee Self-Reporting: Employees can update their OBAs electronically through the platform, ensuring timely and accurate disclosures without the need for paper forms or cumbersome PDFs.
Seamless Integration with FINRA Rules: Our system is designed to align with FINRA Rule 3270, ensuring that all OBAs are disclosed and reviewed in compliance with regulatory requirements.
No More Paper, No More PDFs—Just Efficient Compliance
Gone are the days of manually sifting through piles of paper or waiting on PDFs to be submitted, signed, and reviewed. With AICompliance360™, firms can modernize their OBA tracking processes and maintain a complete audit trail of all OBA activities. This digital transformation allows compliance teams to focus on higher-value tasks instead of administrative burdens.
Preventing Fines and Ensuring Compliance
AICompliance360™ goes beyond simply tracking OBAs—it helps firms prevent the costly fines that come with regulatory non-compliance. The July 2024 case underscores the need for a reliable system that enforces OBA policies and ensures representatives are held accountable for their disclosures. By leveraging AICompliance360™, firms can mitigate these risks, maintain compliance, and protect their reputations.
Ready to Elevate Your Compliance?
At GiGCXOs, we believe in the power of technology to transform compliance processes. AICompliance360™ is a game-changer for firms looking to streamline their OBA tracking and reduce regulatory risks. Don’t let manual systems expose your firm to fines and sanctions—let AICompliance360™ handle the heavy lifting.
Get in touch with GiGCXOs today to learn more about AICompliance360™ and how it can help your firm achieve seamless OBA compliance, all in a paperless, streamlined environment.
