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Finra SIE Exam - Topic 6 Question 21 Discussion

Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?
D) Passively investing in a multifamily house for rental purposes
A) Selling real estate
B) Selling health insurance
C) Professionally refereeing athletic events

Finra SIE Exam - Topic 6 Question 21 Discussion

Actual exam question for Finra's SIE exam
Question #: 21
Topic #: 6
[All SIE Questions]

Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?

Show Suggested Answer Hide Answer
Suggested Answer: D

Step by Step

Outside Business Activity Definition: Per FINRA Rule 3270, an OBA involves compensated business activities outside the scope of the RR's role at their firm. Passive investments are excluded because they do not require active involvement.

Incorrect Options:

A, B, and C: Selling real estate, selling insurance, and refereeing are considered OBAs as they involve active participation and compensation.

FINRA Rule 3270 (Outside Business Activities): FINRA Rule 3270.


by Lorita at Apr 03, 2026, 10:28 AM

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Mona
I think D is the answer. It's passive.
upvoted 0 times
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Lazaro
5 days ago
Really? I’m surprised that passive investing isn’t included.
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Lindsey
10 days ago
I thought selling health insurance was also an OBA.
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Melda
15 days ago
Wait, how is selling real estate an OBA? Seems odd.
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Lorrie
2 months ago
Totally agree, D is the right choice!
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Barrett
2 months ago
D is not considered an OBA.
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Romana
3 months ago
I recall that activities like refereeing might not be classified as OBAs, but I can't remember the specifics.
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Johnathon
3 months ago
I practiced a similar question where selling insurance was considered an OBA. I wonder if that applies here too.
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Bernardine
3 months ago
I'm not entirely sure, but I feel like selling real estate could be an OBA. I need to double-check that.
upvoted 0 times
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Deeann
3 months ago
I think I remember that passive investments aren't considered OBAs, so I might go with D.
upvoted 0 times
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